At the End of the Year,Deltona Company Has a Preliminary

question 21

Multiple Choice

At the end of the year,Deltona Company has a preliminary debit balance in the Manufacturing overhead account of $3 950.Which of the following is the year-end adjusting entry needed to clear the balance to zero?

• A) Debit Work in process $3 950, credit Manufacturing overhead $3 950
• B) Debit Gross profit $3 950, credit Cost of sales $3 950
• C) Debit Manufacturing overhead $3 950, credit Cost of sales
• D) Debit Cost of sales $3 950, credit Manufacturing overhead $3 950

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Definitions:

Queue

A sequence of items or people waiting in line to be processed or attended to, often ordered by the principle of first-in, first-out (FIFO).

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it runs out, considering lead time and demand.

Inventory Level

Inventory level refers to the quantity of goods and materials on hand at a particular point in time within a business.

Work Station 1

A specific area or desk designated for an individual or specific task within a larger operational setup, often used in offices and factories.