The Ogunquit Company Uses a Predetermined Overhead Rate -Refer to the Figure

question 1

Multiple Choice

The Ogunquit Company uses a predetermined overhead rate. The following accounts have these unadjusted balances:
$\begin{array}{ll}\text { Raw Materials } & \$ 20,000 \\\text { Work in Process } & \$ 40,000 \\\text { Finished Goods } & \$ 10,000 \\\text { Cost of Goods Sold } & \$ 50,000\end{array}$
-Refer to the figure.If Manufacturing Overhead was $12,000 overapplied and considered material,what is the journal entry?

• A)Cost of Goods Sold \(\quad\quad \$ 12,000 \)
• Manufacturing Overhead\(\quad\quad\quad\quad\quad \$ 12,000 \)
• B)Manufacturing Overhead\(\quad\$ 12,000\)
• Cost of Goods Sold\(\quad\quad\quad\quad\quad\quad\quad\$ 12,000\)
• C)\(\begin{array}{cc}
• \text { Manufacturing Overhead } & \$ 12,000 \\
• & \\
• \text { Raw Materials } & \$ 2,000 \\
• \text { Work in Process } & \$ 4,000 \\
• \text { Finished Goods } & \$ 1,000 \\
• \text { Cost of Goods Sold } & \$ 5,000
• \end{array}\)
• D)\(\begin{array}{ccc}
• \text { Manufacturing Overhead } & \$ 12,000 & \\
• \text { Work in Process } && \$ 4,800 \\
• \text { Finished Goods } && \$ 1,200 \\
• \text { Cost of Goods Sold } && \$ 6,000
• \end{array}\)

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Definitions:

Negative Reinforcers

In behavioral psychology, negative reinforcement is a process where an undesirable or harmful stimulus is removed after a particular behavior is exhibited, increasing the likelihood of that behavior being repeated in the future.

Extinction

In behavioral psychology, the process through which a conditioned response decreases or disappears as a result of repeated exposure without reinforcement.

Reinforcement

In psychology, a process by which a certain stimulus or action encourages a particular behaviour to occur again.

Punishment

The imposition of a penalty as retribution for an offense or undesirable behavior.