Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories.
(1) Raw materials purchased for cash, $96,000
(2) Direct materials requisitioned for use in production, $69,000
(3) Indirect materials requisitioned for use in production, $22,000
(4) Direct labor wages incurred and paid, $129,000
(5) Indirect labor wages incurred and paid, $16,000
(6) Additional manufacturing overhead costs incurred and paid, $121,000
(7) Manufacturing overhead costs applied to jobs, $163,000
(8) All of the jobs in process were completed.
(9) All of the completed jobs were shipped to customers.
(10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.
Enter the transactions in the T-accounts below and then answer the following questions.
-The manufacturing overhead is:
Definitions:
Validity
refers to the degree to which a tool, test, or research accurately measures what it is intended to measure.
Reliability
The consistency of a measure or test over time, ensuring that repeated experiments or trials yield similar results.
Spuriousness
A relationship between two variables that appears to be causal but is actually due to both variables being influenced by one or more other variables.
Interpretations
The act of explaining or making sense of something, such as a text, action, or event.
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