An Accountant Recently Debited Work-In-Process Inventory and Credited Manufacturing Overhead

question 10

Multiple Choice

An accountant recently debited Work-in-Process Inventory and credited Manufacturing Overhead at a company that uses normal costing. The accountant was:

• A) applying a predetermined overhead amount to production.
• B) recognizing receipt of the factory utilities bill.
• C) recording a year-end adjustment for an insignificant amount of underapplied overhead.
• D) recognizing actual overhead incurred during the period.
• E) recognizing the completion of production.

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Definitions:

Federal Crime

Illegal activities that violate federal laws and are prosecuted by the government of a country, rather than by individual states or local jurisdictions.

Punishable

Deserving or liable to be punished by law or other means due to breaking a rule or law.

Prison

A facility in which individuals are forcibly confined and deprived of a range of personal freedoms under the authority of the state as a form of punishment.

Immediate Action

A swift and direct response to a situation or emergency, typically to mitigate harm or address a pressing issue.