Seuell Inc

question 52

Multiple Choice

Seuell Inc.has provided the following data for the month of December.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 $12,000.

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 December would include the following:

• A)debit to Finished Goods of $56,160
• B)credit to Finished Goods of $56,160
• C)debit to Finished Goods of $2,520
• D)credit to Finished Goods of $2,520

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Definitions:

Standard Deviation

A measure of the dispersion or variability of a set of data points from its mean, often used in finance to gauge investment risk.

Risk Premium

The extra return above the risk-free rate that investors require to compensate them for holding a risky asset.

Bearing Risk

The act of accepting potential loss from uncertainty in investment or business operations.

Unexpected Returns

Returns on an investment that exceed what is predicted by models or expected based on historical trends, often caused by unforeseen factors or events.