Alex Constructors Uses Job-Order Costing for Production of Custom Playground

question 49

Multiple Choice

Alex Constructors uses job-order costing for production of custom playground sets.The company incurred the following costs during March: $\begin{array}{ll}\text { Direct materials used } & \$ 22,000 \\\text { Direct labor } & \$ 14,000 \\\text { Applied overhead } & \$ 18,000 \\\text { Actual overhead } & \$ 20,000\end{array}$ If Alex Constructors closes out any under or overapplied overhead directly to cost of goods sold, which entry will the company make to eliminate the over or underapplied amount in March?

• A)Cost of Goods Sold\(\quad\)\(\quad\)2,000
• Work in Process Inventory\(\quad\)\(\quad\)2,000
• B)Manufacturing Overhead\(\quad\)2,000
• Work in Process Inventory\(\quad\)2,000
• C)Manufacturing Overhead\(\quad\)2,000
• Cost of Goods Sold\(\quad\)2,000
• D)Cost of Goods Sold\(\quad\)2,000
• Manufacturing Overhead\(\quad\)2,000

---

Definitions:

Tribal Leaders

Individuals recognized for their authority, leadership, and influence within tribal societies, often responsible for decision-making and guidance.

Enforce Authority

The act of implementing or ensuring compliance with laws, rules, or decisions by those in power.

Legal Sanctions

Penalties or coercive measures that are imposed by law to enforce compliance with legal norms and regulations.

Kin-Ordered Society

A society organized around family relationships, where social roles and status are determined largely by kinship ties rather than individual achievement.