A Reversing Entry

question 62

Multiple Choice

A reversing entry

• A)is made on the last day of the fiscal year after closing entries have been posted.
• B)is made on the last day of the fiscal year before closing entries have been posted.
• C)is made on the first day of an accounting period.
• D)replicates the adjusting entry that was made in the previous period because the adjusting entry was closed to retained earnings during the closing process.

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Definitions:

Direct Labor-Hour

Direct labor-hour is a measure of the time workers spend on specific tasks directly involved in the production of goods.

Overapplied Overhead

A situation where the allocated overhead cost is more than the actual overhead cost incurred.

Underapplied Manufacturing Overhead

A situation where the actual manufacturing overhead costs are greater than the allocated overhead costs.

Work in Process

The inventory account that tracks costs for incomplete products, which are still in the process of being manufactured.