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

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Definitions:

Relapse Prevention

A strategy in addiction and mental health treatment focusing on identifying and managing high-risk situations to prevent a return to harmful behaviors.

Temporary Occurrence

An event or condition that occurs for a limited period of time and is not permanent.

Alcoholism

A chronic disease characterized by uncontrolled drinking and preoccupation with alcohol, leading to physical and psychological dependence.

Brain Abnormality

Any deviation from the normal structure or function of the brain, which can be due to genetic factors, injury, or disease, affecting behavior and cognitive function.