Figure 6-1 Allen Company Has the Following Information for the Assembly

question 88

Multiple Choice

Figure 6-1 Allen Company has the following information for the Assembly Department for October 2011:
Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
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Refer to Figure 6-1.The journal entry to record materials purchased would include a

• A) debit to Materials Inventory for $40,000.
• B) debit to Materials Inventory for $44,000.
• C) credit to Accounts Payable for $44,000.
• D) both b and c.

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Definitions:

Figure-ground Distinction

The perceptual separation of an object (the figure) from its surroundings (the ground), a fundamental process in visual organization.

Perceptual Constancy

The psychological feature that allows the brain to perceive objects as unchanging despite changes in sensory input, such as shifts in lighting, angle, or distance.

Coherency

The quality of being logical, consistent, and able to be comprehended as a whole.

Reversibility

Reversibility is a concept in cognitive development, referring to the ability to recognize that numbers or objects can be changed or returned to their original condition.