Marshall Enterprises Charged the Following Amounts of Overhead to Jobs

question 121

Multiple Choice

Marshall Enterprises charged the following amounts of overhead to jobs during the year: $20,000 to jobs still in process,$60,000 to jobs completed but not sold,and $120,000 to jobs finished and sold.At year-end,Marshall Enterprise's Factory Overhead account has a credit balance of $5,000,which is not a material amount.What entry should Marshall make at year-end?

• A)No entry is needed.
• B)Debit Factory Overhead $5,000;credit Cost of Goods Sold $5,000.
• C)Debit Cost of Goods Sold $5,000;credit Factory Overhead $5,000.
• D)Debit Factory Overhead $5,000;credit Work in Process Inventory $5,000.
• E)Debit Factory Overhead $5,000;credit Finished Goods Inventory $5,000.

---

Definitions:

Constant Marginal

A condition where the marginal gain or cost of producing an additional unit remains the same, regardless of the level of production.

Average Cost

Average cost, also known as unit cost, is the total cost of production divided by the number of units produced.

Maximize Profits

A business goal to achieve the highest possible profit by optimizing sales revenue and minimizing costs.

Constant Marginal

Pertains to a situation where the additional cost or benefit of producing one more unit of a good or service remains unchanged.