At the Current Year-End,Ruiz Company Found That Its Overhead Was

question 72

Multiple Choice

At the current year-end,Ruiz Company found that its overhead was underapplied by $2,500,and this amount was not considered material.Based on this information,Ruiz should:

• A)close the $2,500 to Cost of Goods Sold.
• B)close the $2,500 to Finished Goods Inventory.
• C)do nothing about the $2,500,since it is not material,and it is likely that overhead will be overapplied by the same amount next year.
• D)carry the $2,500 to the income statement as "Other Expense".
• E)carry the $2,500 to the next period.

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Definitions:

Hammer

A tool typically used for hitting nails or breaking objects, consisting of a heavy head fixed to a long handle.

Anvil

In non-biological contexts, an anvil is a heavy iron block used in metalworking. In the context of the ear, it refers to the incus, a small anvil-shaped bone in the middle ear that helps transmit sound vibrations.

Stirrup

The stirrup, or stapes, is a small bone in the middle ear that plays a key role in the transmission of sound vibrations to the inner ear.

Middle Ear

A part of the ear between the eardrum and the inner ear, containing three small bones that help transmit sound.