-Which Entry Records the Application of Overhead?
A) 1

question 107

Multiple Choice

$\begin{array}{|l|l|l|}\hline \text { 1. Work in process } & \mathrm{XXX} & \\\hline \text { Manufacturing overhead } & \mathrm{XXX} & \\\hline \text { Wages payable } & & \mathrm{XXX} \\\hline \text { 2. Salary expense } & \mathrm{XXX} & \\\hline \text { Wages payable } & & \text { XXX } \\\hline \text { 3. Manufacturing overhead } & \mathrm{XXX} & \\\hline \text { Accumulated amortization } & & \mathrm{XXX} \\\hline \text { 4. Work in process } & \mathrm{XXX} & \\\hline \text { Raw materials } & & \mathrm{XXX} \\\hline \text { 5. Work in process } & \mathrm{XXX} & \\\hline \text { Manufacturing overhead } & & \mathrm{XXX} \\\hline \text { 6. Manufacturing overhead } & \mathrm{XXX} & \\\hline \text { Raw materials } & & \mathrm{XXX} \\\hline \text { 7. Finished goods } & \mathrm{XXX} & \\\hline \text { Work in process } & & \mathrm{XXX} \\\hline \text { 8. Raw materials } & \mathrm{XXX} & \\\hline \text { Accounts payable } & & \mathrm{XXX} \\\hline\end{array}$
-Which entry records the application of overhead?

• A) 1.
• B) 5.
• C) 6.
• D) 3.

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Definitions:

Loan

A form of financial agreement in which one party lends money to another, with the expectation that the money will be paid back with interest.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed.

Opportunity Cost

Opportunity cost is the cost of the opportunity forgone to pursue one option instead of another, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Investment

The allocation of resources, usually monetary, into assets or projects expected to generate future profits or income.