Estimated Overhead and Direct Labor Costs for the Year Were

question 128

Multiple Choice

Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the year, actual overhead was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include:

• A) A debit to Cost of Goods Sold for $600.
• B) A credit to Factory Overhead for $600.
• C) A credit to Finished Goods Inventory for $600.
• D) A debit to Goods in Process Inventory for $600.
• E) A credit to Cost of Goods Sold for $600.

Discern between the structural and functional diversity of lipids.

Describe the role of chemical modification in the functions of biopolymers.

Understand the various types of carbohydrates and their roles in human nutrition.

Recognize the structure and significance of phospholipid bilayers within cellular membranes.

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Definitions:

Bad Debt Expense

An estimated expense that represents accounts receivable that a company does not expect to collect due to customer defaults.

Net Credit Sales

The total amount of sales made on credit minus returns and allowances, representing actual sales revenue.

Matching Concept

An accounting principle that dictates expenses should be matched with the revenues they help to generate within the same accounting period.

Clearinghouse Collection Fee

A charge levied by a clearinghouse for handling the processing and settlement of transactions between financial institutions.