A Company Uses Job-Order Costing $\begin{array} { l } \text { Factory Department Overhead Control}&\$200,000\\& \text {Cost of Goods Sold }&\$200,000\\\end{array}$

question 9

Multiple Choice

A company uses job-order costing.At the end of the year,applied factory overhead costs were $10,000 and actual factory overhead costs were $12,000.The company uses the immediate write-off method to dispose of variances.Which of the following journal entries is necessary under the immediate write-off method?

• A) \(\begin{array} { l }
• \text { Factory Department Overhead Control}&\$200,000\\
• & \text {Cost of Goods Sold }&\$200,000\\
• \end{array}\)
• B) \(\begin{array} { l }
• \text { Factory Department Overhead Control}&\$2,000\\
• & \text {Finished Goods Inventory }&\$2,000\\
• \end{array}\)
• C) \(\begin{array} { l }
• \text {Cost of Goods Sold }&\$2,000\\
• & \text {Factory Department Overhead Applied }&\$2,000\\
• \end{array}\)
• D) \(\begin{array} { l }
• \text { Cost of Goods Sold}&\$2,000\\
• & \text { Factory Department Overhead Control}&\$2,000\\
• \end{array}\)

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Definitions:

Market Fluctuations

Changes in market prices and rates that occur due to varying supply and demand, investor sentiment, or external factors.

Katz's Skills Model

A framework by Robert Katz identifying three essential management skills: technical, human, and conceptual.

Top Management

The highest level of organizational management, including positions such as CEO, CFO, and COO, responsible for the overall direction and success of the organization.

Managing Relationships

The process of developing, maintaining, and enhancing interactions with individuals or groups to achieve desired outcomes and foster mutual respect.