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

question 20

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:

Dividend Yield

A financial measurement showcasing the ratio of a company's annual dividend payment to its current stock price.

Payout

Refers to the distribution of financial rewards or dividends to shareholders or the disbursement of funds to satisfy debts or expenses.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Cumulative

Refers to the aggregate amount that has been gathered or accumulated over time.