Before Prorating the Manufacturing Overhead Costs at the End of 2016,the

question 50

Multiple Choice

Before prorating the manufacturing overhead costs at the end of 2016,the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $57,500 and $20,000 in them,respectively.There was no Work-in-Process at the beginning or end of 2016.During the year,manufacturing overhead costs of $74,000 were actually incurred.The balance in the Applied Manufacturing Overhead was $77,500 at the end of 2016.If the under or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts,how much will be allocated to the Finished Goods Inventory?

• A) $903.
• B) $1,217.
• C) $1,283.
• D) $2,597.

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Definitions:

Survival Needs

Basic requirements necessary for humans to live and function, such as air, water, food, shelter, and safety.

Maslow's Hierarchy

Maslow's hierarchy is a theory in psychology proposed by Abraham Maslow, which outlines a five-tier model of human needs, arranged in a hierarchical order from physiological needs to self-actualization.

Organization

An entity comprising multiple people, such as a company or society, organized for a particular purpose.

Fulfillment Needs

Psychological or emotional needs that, when satisfied, lead to a sense of fulfillment or happiness, as conceptualized in theories of motivation such as Maslow's hierarchy of needs.