Reith Incorporated Has Provided the Following Data for the Month

question 18

Multiple Choice

Reith Incorporated has provided the following data for the month of November. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was overapplied by $4,000.The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for November would include the following:

• A) debit to Finished Goods of $40,860
• B) credit to Finished Goods of $40,860
• C) credit to Finished Goods of $600
• D) debit to Finished Goods of $600

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Definitions:

Palliative

Intended to alleviate symptoms without curing the underlying disease.

Teratogenic

Relating to substances or factors that can cause congenital abnormalities or birth defects during fetal development.

Heparin

An anticoagulant medication used to prevent and treat blood clots in veins, arteries, or the lung.

mEq IM

Refers to milliequivalents per liter in intramuscular injections, a unit of measure indicating the concentration of electrolytes or medication.