The Dina Corp

question 112

Multiple Choice

The Dina Corp. has applied overhead to jobs during the period as follows: The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account, and this amount is not material. The entry to dispose of this remaining factory overhead balance is:

• A) Debit Cost of Goods Sold $5,600; credit Factory Overhead $5,600.
• B) Debit Factory Overhead $5,600; credit Cost of Goods Sold $5,600.
• C) Debit Factory Overhead $5,600; credit Goods in Process Inventory $5,600.
• D) Debit Goods in Process Inventory $5,600; credit Factory Overhead $5,600.
• E) No entry is needed.

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Definitions:

Ownership

The state or fact of legal possession and control over property, which includes the rights to use, sell, or lease it.

Deferred Income Tax Asset

A tax asset that reflects a company's ability to reduce future tax liability due to deductible temporary differences.

Consolidated Income Tax Return

A tax document filed by a parent company encompassing all of its subsidiaries, combining their financial statements for tax purposes.

Tax Rate

The percentage at which an individual or corporation is taxed. The tax rate can vary depending on income level, type of income, or type of goods.