Allen Company Has the Following Information for the Assembly Department

question 38

Multiple Choice

Allen Company has the following information for the Assembly Department for October:
$\begin{array}{lr}\text { Materials purchased } & \$ 40,000 \\\text { Materials used } & 44,000 \\\text { Direct labour } & 30,000 \\\text { Actual manufacturing overhead } & 56,000 \\\text { Cost of goods completed and transferred to the Finishing Dept. } & 120,000\end{array}$
Overhead rate is 200 percent of direct labour costs.
Allen Company uses a process costing system for the Assembly Department.
-Refer to the figure.What debit or credit would the journal entry to record goods completed and transferred out of the Assembly Department include?

• A)a debit to finished goods inventory for $120,000
• B)a credit to materials inventory for $120,000
• C)a debit to work in process-Assembly Department for $120,000
• D)a debit to work in process-Finishing Department for $120,000

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Definitions:

Macro-Subjective Level

An analytical perspective focusing on the collective beliefs, values, and perceptions of society or large groups, influencing social structures and processes.

George Ritzer

A sociologist known for his work on consumerism, globalization, and the theory of McDonaldization, which describes how principles of the fast food industry have come to dominate sectors of American society and the world.

Micro-Objective Level

Refers to a focus on small-scale, specific objectives within a broader project or analysis.

George Ritzer

An American sociologist known for his work on consumerism, globalization, and the concept of McDonaldization of society.