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:

Parallel Processing

The ability of the brain to simultaneously process incoming stimuli of differing quality, a key feature of neural network functioning.

Continuity

Refers to the unbroken and consistent existence or operation of something over a period of time.

Proximity

The physical or psychological closeness between people or objects, often influencing relationships and interactions.

Closure

A psychological term denoting the need for resolution or an end to a particular emotional or relational issue.