A Company Charged the Following Amounts of Overhead to Jobs

question 35

Essay

A company charged the following amounts of overhead to jobs during the current year: $12,000 to jobs still in process, $42,000 to jobs completed but not sold, and $66,000 to jobs finished and sold. At year-end, the company's Factory Overhead account has a credit balance of $9,000, which is not a material amount. What entry (if any) should the company make at year-end related to this overhead balance?

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Definitions:

Quasi-contractual

A legal concept where a court enforces an obligation on parties as if they had entered into a contract, to prevent unjust enrichment.

Necessaries

Essential items required for living, often related to contracts for minors for goods and services essential to their welfare.

Disaffirmance

The act of denying, refusing, or contradicting an assertion or contract, especially in legal contexts.

Necessaries

Items considered essential for maintaining a person’s standard of living, such as food, clothing, and shelter, which one is legally obligated to provide for dependants.