Answer the Following Questions Using the Information Below

question 25

Multiple Choice

Answer the following questions using the information below:
Lehman Pottery Company manufactures clay molded pottery on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.
Data for the Assembly Department for August 2008 are:
Costs for August:

-Which of the following journal entries records the Assembly Department's conversion costs for the month, assuming conversion costs are 10% higher than expected?

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Definitions:

H+

The proton, often representing an acid in chemistry, capable of forming hydronium ions (H3O+) in solution.

Reactive Intermediate

Highly reactive species formed transiently in the course of a chemical reaction.

Hydroxide

A negatively charged ion (OH-) consisting of oxygen and hydrogen.

Diazomethane

A highly reactive organic compound with the formula CH2N2, used in organic synthesis to introduce methyl groups or to form diazo compounds.