Altima,Inc

question 176

Multiple Choice

Altima,Inc.finished Job A40 on the last working day of the year.It utilized $370 of direct materials and $3420 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 $5158 and a credit to Materials Inventory $5158
• B) debit to Cost of Goods Sold $5158 and a credit to Finished Goods Inventory $5158
• C) debit to Finished Goods Inventory $5158 and a credit to Work-in-Process Inventory $5158
• D) debit to Work-in-Process Inventory $5158 and a credit to Finished Goods Inventory $5158

---

Definitions:

Lorenz Curve

A graphical representation used in economics to show the distribution of income or wealth within a society, illustrating levels of inequality.

Personal Distribution

The distribution of income and wealth among individuals and households in an economy.

Gini Ratio

An index that quantifies the disparity in income distribution among a population, where 0 signifies complete equality and 1 denotes complete disparity.

Income Distribution

The way in which total income is shared among the population or different groups within a society.