Question
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
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
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A debit to Work in Process Inventory for $790.
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A credit to Factory Overhead for $790.
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A credit to Cost of Goods Sold for $790.
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A credit to Finished Goods Inventory for $790.
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A debit to Cost of Goods Sold for $790.
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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
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$48,100.
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$12,400.
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$34,400.
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$24,700.
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$9,700.
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