A firm's total overhead incurred for the year was $40 000, and at year-end the overhead component of WIP, FG and COGS were as follows:
If underapplied or overapplied overhead is to be prorated, what is the amount (to the nearest dollar) that will be transferred to WIP because of the proration?
A) Credit WIP with $945
B) Debit WIP with $945
C) Credit WIP with $974
D) Debit WIP with $974

Question

A firm's total overhead incurred for the year was $40 000, and at year-end the overhead component of WIP, FG and COGS were as follows: 
If underapplied or overapplied overhead is to be prorated, what is the amount (to the nearest dollar) that will be transferred to WIP because of the proration?
A) Credit WIP with $945 
B) Debit WIP with $945 
C) Credit WIP with $974 
D) Debit WIP with $974

Quizplus · Accepted Answer

The Answer of A firm's total overhead incurred for the year was $40 000, and at year-end the overhead component of WIP, FG and COGS were as follows: 
If underapplied or overapplied overhead is to be prorated, what is the amount (to the nearest dollar) that will be transferred to WIP because of the proration?
A) Credit WIP with $945 
B) Debit WIP with $945 
C) Credit WIP with $974 
D) Debit WIP with $974

A Firm's Total Overhead Incurred for the Year Was $40