Carson Inc A) Credit to Finished Goods of $900

question 43

Multiple Choice

Carson Inc.has provided the following data for the month of May.There were no beginning inventories;consequently,the direct materials,direct labor,and manufacturing overhead applied listed below are all for the current month.Manufacturing overhead for the month was underapplied by $10,000.The company allocates any underapplied or overapplied overhead among Work-in-Process,finished goods,and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.The journal entry to record the allocation of any underapplied or overapplied overhead for May would include the following: $$\begin{array} { | l | r | r | r | r | } \hline & \begin{array} { r } \text { Work-in } \\\text { Process }\end{array} & \begin{array} { r } \text { Finished } \\\text { Goods }\end{array} & \begin{array} { r } \text { Cost of } \\\text { Goods } \\\text { Sold }\end{array} & \text { Total } \\\hline \text { Direct materials } & \$ 5,010 & \$ 11,500 & \$ 111,320 & \$ 127,830 \\\hline \text { Direct labor } & 2,430 & 10,500 & 101,640 & 114,570 \\\hline \begin{array} { l } \text { Manutacturing } \\\text { overhead } \\\text { applied }\end{array} & 3,200 & 7,200 & 69,600 & 80,000 \\\hline \text { Total } & \$ 10,640 & \$ 29,200 & \$ 282,660 & \$ 322,400 \\\hline\end{array}$$

• A) credit to Finished Goods of $900.
• B) debit to Finished Goods of $29,200.
• C) credit to Finished Goods of $29,200.
• D) debit to Finished Goods of $900.

Understand differences and implications between gross and net methods for accounts payable.

Analyze and construct journal entries for promotional expenses and premium offers.

Grasp the accounting treatment of warranties under different accounting methods.

Calculate and report trade accounts payable adjusted for cash discounts.

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Definitions:

Classical Conditioning

A procedure of learning through which the regular pairing of two stimuli results in a response that was at first initiated by the second stimulus but is ultimately initiated by the first stimulus alone.

Operant Conditioning

A learning method where the consequences of a behavior (reinforcements or punishments) influence the likelihood of that behavior occurring again.

Latent Learning

Learning that occurs without obvious reinforcement and is not immediately observable in an individual’s behavior.

Operant Conditioning

A learning approach that relies on the use of incentives and consequences for one's actions.