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:

Foot-In-The-Door

A compliance technique where a small initial request is made which is easy to agree to, followed by a larger request.

Fundamental Attribution Error

The inclination to give too much importance to individual traits and overlook the influence of circumstances when evaluating the actions of others.

Situational Attributions

The process of explaining one's own or other people's behavior as the result of external factors, such as the context or the situation.

Cognitive Dissonance

A psychological concept referring to the mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.