Morewell,Inc

question 131

Multiple Choice

Morewell,Inc.used a predetermined overhead allocation rate to allocate $85,000 and $65,000 of indirect costs to Coloring Department and Mixing Department,respectively.The journal entry to record the allocation of overhead costs to the Coloring Department is ________.

• A) debit Manufacturing Overhead, $85,000; credit Work-in-Process Inventory-Mixing, $85,000
• B) debit Work-in-Process Inventory-Coloring, $85,000; credit Manufacturing Overhead, $85,000
• C) debit Work-in-Process Inventory-Coloring, $65,000; credit Manufacturing Overhead, $65,000
• D) debit Manufacturing Overhead, $65,000; credit Work-in-Process Inventory-Mixing, $65,000

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Definitions:

Unilateral

Involving only one party or side, often referring to actions or agreements made by one entity without the need for consent or participation of another.

Frequent Buyer

An individual or entity that consistently purchases goods or services from a particular company, often benefiting from loyalty programs.

Fraudulently Induces

Fraudulently induces refers to the act of deceitfully convincing someone to act, usually to enter into a contract, by misrepresenting material facts or by concealment.

Common Law

A collection of legal principles established by judicial decisions, instead of being formulated through legislative processes or documented in formal statutes.