Once the Amounts of the Service Department Allocations Have Been

question 22

Multiple Choice

Once the amounts of the service department allocations have been determined,a journal entry should be prepared to record the distributions,the result of which is:

• A)debit balances in the Factory Overhead accounts of the production departments for which the total agrees to the total amount of factory overhead incurred.
• B)credit balances in the Factory Overhead accounts of the production departments for which the total agrees to the total amount of factory overhead incurred.
• C)debit balances in the Factory Overhead accounts of the service departments for which the total agrees to the total amount of factory overhead incurred.
• D)credit balances in the Factory Overhead accounts of the service departments for which the total agrees to the total amount of factory overhead incurred.

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Definitions:

Bitumen

A sticky, black, highly viscous liquid or semi-solid form of petroleum, used primarily in road construction and waterproofing.

Coal Formation

The process by which dead plant material over millions of years is transformed under heat and pressure into coal.

Heat Content

The total amount of heat energy contained in a substance or system.

Natural Gas

A type of fossil fuel primarily composed of methane that serves as a source of energy for activities such as heating, cooking, and producing electricity.