Sanker Inc

question 33

Multiple Choice

Sanker Inc. has provided the following data for the month of August. 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 $5,000.
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 work in process inventory at the end of August after allocation of any underapplied or overapplied overhead for the month is closest to:

• A) $18,593
• B) $18,780
• C) $17,080
• D) $17,267

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Definitions:

Liability

A legal responsibility or obligation, typically referring to the duty to compensate for harm or loss caused to another party.

Agent

An individual or entity authorized to act on behalf of another person or entity, typically in business transactions, creating a legal relationship called agency.

Independent Contractor

A person or entity contracted to perform work for—or provide services to—another entity as a non-employee, which means they have greater autonomy in how they complete their work.

Excavation Work

The process of removing earth, rock, or other materials in a site to form a cavity or hole.