Figure 4-7 The Cherokee Company Uses a Predetermined Overhead Rate. the Following

question 71

Multiple Choice

Figure 4-7
The Cherokee Company uses a predetermined overhead rate. The following accounts have these unadjusted balances:
Raw Materials $20,000 Work in Process $40,000 Finished Goods $10,000 Cost of Goods Sold $50,000
-Refer to Figure 4-7. If Manufacturing overhead was $12,000 overapplied and considered immaterial, what is the journal entry?

• A) Cost of Goods Sold $12,000 Manufacturing Overhead $12,000
• B) Manufacturing Overhead $12,000 Cost of Goods Sold $12,000
• C) Manufacturing Overhead $12,000 Raw Materials $2,000 Work in Process $4,000 Finished Goods $1,000 Cost of Goods Sold $5,000
• D) Raw Materials $2,000 Work in Process $4,000 Finished Goods $1,000 Cost of Goods Sold $5,000 Manufacturing Overhead $12,000
• E) Manufacturing Overhead $12,000 Work in Process $4,800 Finished Goods $1,200 Cost of Goods Sold $6,000

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Definitions:

Language Acquisition Device

A theoretical construct in the field of linguistics that suggests an innate capability or mechanism in the human brain that allows children to naturally learn language.

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The pre-established network of neurons in the brain, responsible for innate abilities and predispositions.

Grammar

The set of structural rules governing the composition of phrases, clauses, and words in any given natural language.

Deep Structure

The underlying meaning of a sentence.