Midtown,Inc

question 127

Multiple Choice

Midtown,Inc.uses a predetermined overhead allocation rate of $68 per direct labor hour.In January,the company completed Job A23 which utilized 24 direct labor hours.Which of the following correctly describes the journal entry to allocate overhead to the job?

• A) debit Finished Goods Inventory $1,632 and credit Manufacturing Overhead $1,632
• B) debit Manufacturing Overhead $68 and credit Work-in-Process Inventory $68
• C) debit Work-in-Process Inventory $1,632 and credit Manufacturing Overhead $1,632
• D) debit Cost of Goods Sold $68 and credit Finished Goods Inventory $68

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Definitions:

Supervisor Wages

The compensation, often hourly or salaried, paid to individuals in supervisory positions for overseeing the work of others.

Factory

A factory is an industrial site where workers manufacture goods or operate machines processing one product into another, typically involving large-scale production methods and specialized equipment.

Australian Accounting Standards

A set of principles and rules that guide financial reporting and accounting practices in Australia.

Departmental Production Report

A document that tracks the output, efficiency, and costs of a specific department within a manufacturing facility.