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Mieras Inc Manufacturing Overhead for the Month Was Underapplied by $2,000

question 22

Multiple Choice

Mieras 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. $\begin{array}{lrrrr}&\text {Work In}&\text { Finished }&\text {Cost of }\\&\text {Process}&\text { Goods}&\text { Goods Sold}&\text { Total}\\\text {Direct materials.............}&\$ 3,880 & \$ 11,440 & \$57,070& \$ 72,390 \\\text {Direct labor...................}&5,100 & 16,720& 83,410 &105,230 \\\text {Manufacturing overhead}&\\\text { applied..........................}&\underline{4,690} & \underline{10,720}& \underline{51,590} & \underline{67,000} \\\text {Total.............................}&\underline{ \$ 13,670} & \underline{ \$ 38,880} & \underline{ \$ 192,070} & \underline{\$ 244,620}\end{array}$ Manufacturing overhead for the month was underapplied by $2,000. 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 November would include the following:

Definitions:

Commission Payment Plans

Arrangements specifying how commissions are calculated, scheduled, and paid to salespersons or agents based on their sales achievements.

Insurance Policies

Contracts between an insurer and an insured that provides financial protection or reimbursement against losses.

Total Gross Pay

The complete amount of income earned by an employee before any deductions or taxes are applied.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, often a percentage of the sale.