Altima Company Finished Job A40 on the Last Working Day

question 80

Multiple Choice

Altima Company finished Job A40 on the last working day of the year. It utilized $400 of direct materials and $3,600 of direct labor. Altima uses a predetermined overhead allocation rate based on percentage of direct labor costs which has been fixed at 40%. The entry to record the completion of the job should involve a:

• A)debit to Finished Goods Inventory $5,440 and a credit to Materials Inventory $5,440.
• B)debit to Cost of Goods Sold $5,440 and a credit to Finished Goods Inventory $5,440.
• C)debit to Finished Goods Inventory $5,440 and a credit to Work-in-Process Inventory $5,440.
• D)debit to Work-in-Process Inventory $5,440 and a credit to Finished Goods Inventory $5,440.

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Definitions:

Managers Attitude

The disposition or mindset of managers towards adopting business strategies, leading employees, and making decisions.

Commit

To pledge or bind an organization or individual to a certain course of action or level of financial support.

Undesired Outcome

A result or consequence that deviates negatively from what was intended or expected.

Increased Efficiencies

Improvements that result in a higher output of goods or services for the same or lower input of resources, often through better management practices, technology, or processes.