Bosshart Inc

question 107

Multiple Choice

Bosshart Inc.has provided the following data for the month of May.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 underapplied by $6,000.
The Corporation 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 manufacturing overhead applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for May would include the following:

• A) credit to Work in Process of $31,980
• B) credit to Work in Process of $660
• C) debit to Work in Process of $31,980
• D) debit to Work in Process of $660

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Definitions:

Supply And Demand Equilibrium

The point at which the quantity of a product demanded by consumers equals the quantity supplied by producers.

Frictional Unemployment

This refers to unemployment that occurs when people are between jobs or are entering the workforce for the first time.

Labor Supplied Exceeding

A situation where the quantity of labor offered by workers surpasses the quantity demanded by employers.

Long-run Unemployment

Unemployment that persists in an economy for an extended period, often due to fundamental shifts in the economy or structural changes in the labor market.