Portland Company Applies Manufacturing Overhead The Following Accounts Had the Unadjusted Balances

question 50

Multiple Choice

Portland Company applies manufacturing overhead.At the end of the year the following data were available: $\begin{array}{|l|l|}\hline \text { Actual manufacturing overhead } & \$ 115,000 \\\hline \text { Estimated manufacturing overhead } & \$ 110,000 \\\hline \text { Applied manufacturing overhead } & \$ 100,000 \\\hline\end{array}$ The following accounts had the unadjusted balances:
$\begin{array}{|l|l|}\hline \text { Raw materials inventory } & \$ 100,000 \\\hline \text { Work-in-process inventory } & \$ 100,000 \\\hline \text { Finished goods inventory } & \$ 100,000 \\\hline \text { Cost of goods sold } & \$ 300,000 \\\hline\end{array}$ What is the journal entry if the amount is considered material?

• A)\(\begin{array}{ll}
• \text { Work in Process } & \$ 1,000 \\
• \text { Finished Goods } & \$ 1,000 \\
• \text { Cost of Goods Sold } & \$ 3,000\\
• \text { Manufacturing Overhead }&&\$5,000
• \end{array}\)
• B)\[\begin{array} { c c c }
• \text { Manufacturing Overhead } & \$ 5,000 & \\
• \text { Work in Process } & & \$ 1,000 \\
• \text { Finished Goods } && \$ 1,000 \\
• \text { Cost of Goods Sold } && \$ 3,000
• \end{array}\]
• C)\(\begin{array}{l}
• \begin{array}{ll}
• \text { Work in Process } & \$ 3,000 \\
• \text { Finished Goods } & \$ 3,000 \\
• \text { Cost of Goods Sold } & \$ 9,000
• \end{array}\\
• \text { Manufacturing Overhead } &\$ 15,000
• \end{array}\)
• D)\(\begin{array} { c c c }
• \text { Manufacturing Overhead } & \$ 15,000 & \\
• \text { Work in Process } & &\$ 3,000 \\
• \text { Finished Goods } && \$ 3,000 \\
• \text { Cost of Goods Sold } && \$ 9,000
• \end{array}\)

Grasp the concept of low-cost, rapid experimentation for validation of business ideas.

Appreciate the value of validations and learning from prototypes and minimum viable products.

Understand the role of storyboarding and sketches in visualizing and communicating business plans and concepts.

Recognize the importance of feedback and data analysis in refining business ideas.

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Definitions:

Research Hypothesis

A statement predicting a significant relationship or difference between two or more variables in a study.

Prediction

The act of making informed guesses about the future values or occurrences based on current data or trends.

Scientific Method

Method of investigation that uses the objective and systematic collection and analysis of empirical data to test theories and hypotheses.

Empirical Data

Information obtained through observation or experimentation that is used as a basis for inference or reasoning.