The Allen Company Has the Following Information for the Assembly

question 40

Multiple Choice

The Allen Company has the following information for the Assembly Department for the month of October: $\begin{array}{lr}\text { Materials purchased } & \$ 4,000 \\\text { Materials used } & 49,000 \\\text { Direct labor } & 30,000 \\\text { Actual manufacturing overhead } & 56,000 \\\text { Cost of goods completed and transferred to the Finishing Dept. } & 125,000\end{array}$ Overhead rate is 200 percent of direct labor costs. Allen Company uses a process costing system for the Assembly Department.
The journal entry to record goods completed and transferred out of the Assembly Department would include a

• A)debit to Finished Goods Inventory for $125,000.
• B)credit to Materials Inventory for $125,000.
• C)debit to Work in Process-Assembly Department for $125,000.
• D)debit to Work in Process-Finishing Department for $125,000.

---

Definitions:

Automatic Acceptance

The unconditional and immediate acceptance of an individual or situation without the need for further verification or scrutiny.

Middle-Class

The middle-class refers to the economic group between the working class and the upper class, typically characterized by moderate income levels and stable employment.

Hidden Rules

Unspoken, informal guidelines or expectations that govern behavior within specific social groups or cultures.

Families in Poverty

Households living below the poverty threshold, affecting their ability to meet basic needs such as food, clothing, and shelter.