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Question
The Dina Corp. has applied overhead to jobs during the period as follows:
| Jobs finished and sold | $ 46,000 |
| Jobs started and in process . | 54,000 |
| Jobs finished and unsold | 100,000 |
The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account, and this amount is not material. The entry to dispose of this remaining factory overhead balance is:
A. Debit Cost of Goods Sold $5,600; credit Factory Overhead $5,600.
B. Debit Factory Overhead $5,600; credit Cost of Goods Sold $5,600.
C. Debit Factory Overhead $5,600; credit Goods in Process Inventory $5,600.
D. Debit Goods in Process Inventory $5,600; credit Factory Overhead $5,600.
E. No entry is needed.
Answer
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Related questions
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Although a fixed budget is only useful over the relevant range of operations, a flexible budget is useful over all possible production levels.
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A fixed budget performance report never provides useful information for evaluating variances.
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Use the following information to prepare a budgeted income statement for Arbor Company for the month of June.
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Use the following information to prepare the June cash budget for Arbor Company. It should show expected cash receipts and cash disbursement for the month and the cash balance expected on June 30.
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