Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $113,500 and $125,100, respectively. During the year, actual overhead was $107,500 and actual direct labor cost was $119,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include (Round predetermined overhead rate to nearest whole percentage.)

Multiple Choice

• A debit to Work in Process Inventory for $790.

• A credit to Factory Overhead for $790.

• A credit to Cost of Goods Sold for $790.

• A credit to Finished Goods Inventory for $790.

• A debit to Cost of Goods Sold for $790.

• Andrew Industries purchased $172,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $23,400, and the materials used to complete jobs during the month were $147,300 of direct materials and $13,700 of indirect materials. What is the ending Raw Materials Inventory balance for March?

  Multiple Choice

• $48,100.

• $12,400.

• $34,400.

• $24,700.

• $9,700.