Carson Inc

question 118

Multiple Choice

Carson Inc. has provided the following data for the month of May. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

Manufacturing overhead for the month was underapplied by $10,000.
The company allocates any underapplied or overapplied overhead among work-in-process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied overhead for May would include a:

• A) credit to Finished Goods Inventory of $900.
• B) debit to Finished Goods Inventory of $29,200.
• C) credit to Finished Goods Inventory of $29,200.
• D) debit to Finished Goods Inventory of $900.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which outlines a five-tier model of human needs, from basic physiological needs to self-actualization.

Postpurchase Cognitive Dissonance

The psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers’ remorse.

Expensive Pair

Products or items that are costly and often bought together, typically offering complementary benefits or satisfying related needs.

Evoked Set

Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.