[The Following Information Applies to the Questions Displayed Below

question 50

Multiple Choice

[The following information applies to the questions displayed below.]
Cooper Corporation produces decorator wall coverings.Budgeted production is 240,000 square feet per month,and the standard direct labor requirement to make this amount is 6,000 hours.All overhead is allocated based on direct labor hours.The following information is available:

-The journal entry to apply overhead to Work in Process Inventory for the month included:

• A)A debit to Work in Process Inventory of $16,000.
• B)A debit to Work in Process Inventory of $13,500.
• C)A debit to Work in Process Inventory of $16,875.
• D)A credit to Work in Process Inventory of $875.

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the shares remains the same.

Common Stock Account

An equity account representing the ownership interest of common shareholders in a company.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders.

Share Split

A business move where a company splits its current shares into additional ones to increase the shares' marketability.