Bosshart Inc

question 115

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:

Plane Operating Costs

Expenses associated with the operation of an aircraft, including fuel, maintenance, crew salaries, and insurance.

Passengers

Passengers refer to individuals who travel in a vehicle but are not directly involved in the vehicle's operation, often regarded in contexts such as public transportation, airlines, and automobiles.

Supplies Cost

The cost associated with the items and materials used in the operation of a business.

Spending Variance

The difference between the budgeted or planned amount of expense and the actual amount spent.