Fils IncHas Provided the Following Data for the Month of March

question 171

Multiple Choice

Fils Inc.has provided the following data for the month of March.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 $4,000.
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 March would include the following:

• A) debit to Cost of Goods Sold of $3,080
• B) debit to Cost of Goods Sold of $149,410
• C) credit to Cost of Goods Sold of $3,080
• D) credit to Cost of Goods Sold of $149,410

---

Definitions:

Marketing Channels

Pathways or routes through which goods and services flow from the producer to the consumer, including intermediaries like distributors and retailers.

Business Products

Products organizations buy that assist in providing other products for resale. Also called B2B products or industrial products.

Indirect Marketing Channel

A pathway of distribution involving one or more intermediaries (such as wholesalers or retailers) between the producer and the consumer.

Intermediaries

Entities or individuals that act as a middleman in the distribution chain between producer and end-user, facilitating transactions or dissemination of products.