Denherder Inc

question 100

Multiple Choice

Denherder Inc. has provided the following data for the month of November. 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 $5,000.
The company allocates any underapplied or overapplied manufacturing 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 manufacturing overhead for November would include the following:

• A)credit to Work in Process of $250
• B)debit to Work in Process of $11,200
• C)credit to Work in Process of $11,200
• D)debit to Work in Process of $250

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Definitions:

Opportunity Cost

Giving up possible benefits from other solutions when a single solution is chosen.

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over a period of time.

Entrepreneurship

The act of creating, organizing, and running a new business venture, typically characterized by risk-taking and innovation to achieve profit and growth.

Capital

Resources, especially financial assets, used to create goods, services, or wealth.