Staniszewski Inc

question 131

Multiple Choice

Staniszewski Inc. has provided the following data for the month of March. 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 overapplied by $1,000.
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 March would include the following:

• A)credit to Finished Goods of $38,780
• B)debit to Finished Goods of $38,780
• C)credit to Finished Goods of $140
• D)debit to Finished Goods of $140

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Definitions:

Dun & Bradstreet Canada

A branch of the global corporation Dun & Bradstreet that specializes in providing commercial data, analytics, and insights for businesses in Canada.

Fixed Asset Turnover Ratio

A financial metric that measures how efficiently a company uses its fixed assets to generate sales.

Net Income

The financial gain a company realizes after all deductions, including taxes and costs, are taken from revenue.

Total Assets

The sum of all assets owned by an individual or organization, including cash, investments, property, and other valuables, representing the total resources available for use in generating future income.