Stockman Incorporated Has Provided the Following Data for the Month

question 111

Multiple Choice

Stockman 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 $1,000.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) credit to Finished Goods of $250
• B) credit to Finished Goods of $57,370
• C) debit to Finished Goods of $250
• D) debit to Finished Goods of $57,370

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Definitions:

Skeletal

Related to the skeleton, the internal framework of the body composed of bones and cartilage.

Types of Cartilage

Cartilage is classified into three types: hyaline, which is found in joints; elastic, which is found in structures like the ear; and fibrocartilage, which provides padding in areas like the intervertebral discs.

Chondrocytes

Specialized cells found within cartilage that produce and maintain the cartilaginous matrix.

Fibrocartilage

A type of cartilage with a dense collagen fiber matrix, providing sturdy support and resisting pressure.