Altima,Inc

question 110

Multiple Choice

Altima,Inc.finished Job A40 on the last working day of the year.It utilized $360 of direct materials and $3370 of direct labor.Altima uses a predetermined overhead allocation rate based on 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 $5078 and a credit to Materials Inventory $5078
• B)debit to Cost of Goods Sold $5078 and a credit to Finished Goods Inventory $5078
• C)debit to Finished Goods Inventory $5078 and a credit to Work-in-Process Inventory $5078
• D)debit to Work-in-Process Inventory $5078 and a credit to Finished Goods Inventory $5078

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Definitions:

Business Process

A set of activities or tasks that organizations perform in a repeatable and systematic manner to achieve designated goals.

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its products or services, rather than varying prices based on factors like location, buying habits, or income level.

Production Costs

The total expenditure involved in manufacturing a product or delivering a service, including raw materials, labor, and overhead expenses.

Total Revenue

The total income generated by a business from the sale of goods or services before any expenses are subtracted.