Stockman Inc

question 192

Multiple Choice

Stockman Inc. 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:

Normal Good

A type of good for which demand increases as the income of consumers increases, showing a positive relationship between income and demand.

Sellers

Individuals or entities that offer goods or services for sale in the market.

Output

The total amount of goods or services produced by a company or industry over a specific period.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production.