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

question 99

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 underapplied and considered material,what is the journal entry?

• A)Cost of Goods Sold $12,000 Manufacturing Overhead $12,000
• B)Work in Process $4,800 Finished Goods $1,200
• Cost of Goods Sold $6,000
• Manufacturing Overhead $12,000
• C)Manufacturing Overhead $12,000 Raw Materials $2,000
• Work in Process $4,000
• Finished Goods $1,000
• Cost of Goods Sold $5,000
• D)Raw Materials $2,000 Work in Process $4,000
• Finished Goods $1,000
• Cost of Goods Sold $5,000
• Manufacturing Overhead $12,000

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Definitions:

Progress Invoicing

Billing method used to charge clients for portions of a project as stages are completed rather than at project end.

Preferences

User-defined settings within software applications that customize functionality according to the user's needs and requirements.

Budget Types

Various categories of budgets used in financial planning, such as operating, capital, or cash flow budgets, each serving different purposes.

Profit & Loss

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year.