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:

Due Diligence

The comprehensive appraisal of a business or investment opportunity to assess its value and uncover any potential liabilities or risks.

Attraction-Selection-Attrition (ASA) Theory

A theory suggesting that organizations attract and select individuals with similar personalities and lose those who are less similar, thereby becoming more homogeneous over time.

Artifacts

Physical objects created by human beings that have cultural or historical significance.

Corporate Value

Fundamental beliefs or principles that guide the actions and decision-making processes of an organization.