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Sanker Inc

question 37

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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. 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 journal entry to record the allocation of any underapplied or overapplied overhead for August would include the following: A)  debit to Finished Goods of $34,880 B)  debit to Finished Goods of $1,250 C)  credit to Finished Goods of $34,880 D)  credit to Finished Goods of $1,250 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 journal entry to record the allocation of any underapplied or overapplied overhead for August would include the following:

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Definitions:

Farming

The practice of cultivating the land or raising stock, such as the growing of crops or the raising of livestock to produce food, fiber, and other materials.

Brocolli

A green vegetable with a large flowering head, often consumed for its nutritional value.

Marginal Product

The marginal product is the additional output resulting from a one-unit increase in the use of a variable input, holding all other inputs constant, in the production process.

Units of Output

The measure of total production or services produced by a company or sector.

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