Mallet Company Has Only Job 844 in Process on March $\begin{array}{|l|r|}\hline \text { Purchased during the month } & \$ 29,500 \\\hline \text { Used in production } & \$ 30,500 \\\hline\end{array}$

question 99

Multiple Choice

Mallet Company has only Job 844 in process on March 1 of the current year. The job has been charged with $2,000 of direct material cost, $2,500 of direct labour cost, and $1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate of 70% of direct labour cost. Any under- or overapplied overhead cost is closed out to Cost of Goods Sold at the end of the month.

During March, the following activity and amounts were recorded by the company:

Raw materials (all direct materials) :
$\begin{array}{|l|r|}\hline \text { Purchased during the month } & \$ 29,500 \\\hline \text { Used in production } & \$ 30,500 \\\hline\end{array}$
Labour:
$\begin{array}{|l|r|}\hline \begin{array}{l}\text { Direct labour hours worked during the } \\\text { month }\end{array} & 2,500 \\\hline \text { Direct labour cost incurred } & \$ 26,500 \\\hline \text { Indirect labour costs incurred } & \$ 5,500 \\\hline \begin{array}{l}\text { Manufacturing overhead costs incurred } \\\text { (total) }\end{array} & \$ 18,500 \\\hline\end{array}$
Inventories:
$\begin{array}{|l|r|}\hline \text { Raw materials (all direct) March 31 } & \$ 7,500 \\\hline \text { Work in process, March 31 } & \$ 14,500 \\\hline\end{array}$
Work in Process inventory contains $\$ 5,500$ of direct labour cost.


-Which of the following would be included in the entry to dispose of the under- or over applied overhead cost for the month?

• A) A debit of $50 to Cost of Goods Sold.
• B) A debit of $50 to Manufacturing Overhead.
• C) A debit of $5,500 to Manufacturing Overhead.
• D) A credit of $5,500 to Cost of Goods Sold.

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Definitions:

Amphibians

Members of the vertebrate class that includes salamanders, frogs, and caecilians.

Ancestral Organisms

Early forms of life from which current species have descended, often studied to understand evolutionary relationships.

Fishes

Fishes comprise a diverse group of aquatic creatures with gills and fins, living in fresh or saltwater environments, known for their role in ecological systems and as a food source.

Devonian Period

A geologic period of the Paleozoic Era, approximately 419.2 to 358.9 million years ago, known as the "Age of Fishes" due to the diversity and abundance of fish species.