Held Incorporated Has Provided the Following Data for the Month

question 8

Multiple Choice

Held Incorporated has provided the following data for the month of June. 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 June would include the following:

• A) credit to Work in Process of $21,450
• B) credit to Work in Process of $70
• C) debit to Work in Process of $21,450
• D) debit to Work in Process of $70

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Definitions:

Derivative Action

A lawsuit brought by a corporation's shareholder on behalf of the corporation against a third party, often an insider of the corporation.

Independent Directors

Board members who do not have a material or pecuniary relationship with the company or its management, ensuring unbiased decision-making.

Corporation Interest

The financial or ownership stake that individuals or entities have in a corporation, often represented by shares of the company's stock.

Repurchase

The act of buying back previously sold stock or securities by the company that issued them.