Kubinski Inc

question 162

Multiple Choice

Kubinski Inc. has provided the following data for the month of September. 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 $2,000. The Corporation 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 manufacturing overhead applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for September would include the following:

• A)debit to Finished Goods of $33,090
• B)debit to Finished Goods of $300
• C)credit to Finished Goods of $33,090
• D)credit to Finished Goods of $300

---

Definitions:

Safety Inventory

Extra inventory held to guard against uncertainties in demand or supply, ensuring product availability.

Advanced Planning Systems

Integrated software systems designed to optimize production planning, scheduling, inventory control, and supply chain management.

Data Accuracy

The degree to which data correctly reflects the real-world values it is intended to represent.

Advanced Planning Systems

Software solutions designed to improve the efficiency and effectiveness of supply chain and production planning through advanced computational algorithms.