Longstaff Inc

question 142

Multiple Choice

Longstaff Inc. has provided the following data for the month of March. 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 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 March would include the following:

• A)debit to Work in Process of $13,650
• B)debit to Work in Process of $500
• C)credit to Work in Process of $13,650
• D)credit to Work in Process of $500

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Definitions:

Dividend Payout Ratio

Dividend Payout Ratio is a financial metric that measures the proportion of a company's earnings paid out to shareholders in the form of dividends.

Retained Earnings

This refers to the cumulative amount of net income generated by a company that is reinvested in the business, minus any dividends paid out to shareholders.

Net Income

Net income, also known as net profit, is the total earnings of a company after all expenses and taxes have been deducted from revenue.

Planning Assumptions

The set of hypotheses upon which a plan or strategy is built, regarding future market conditions, costs, or other factors.