There are two acceptable methods for closing out any balance of underapplied or overapplied manufacturing overhead. One method involves allocation of the balance among several accounts, whereas the other closes any balance directly to

A. Work in Process inventory.

B. Cost of Goods Sold.

C. Cost of Goods Manufactured.

D. Finished Goods inventory.

On March 1, Maxwell Corporation had $24,000 of raw materials on hand. During the month, the Corporation purchased an additional $60,000 of raw materials. During March,$54,000 of raw materials was requisitioned from the storeroom for use in production. What are the total debits entered in the Raw Materials account during the month of March?

A. $24,000

B. $60,000

C. $54.000

D. $84,000

What will happen to variable costs when the level of activity decreases?

A. Decrease in total

B. Increase per unit

C. Decrease per unit

D. Increase in total

Grayson Corporation uses the FIFO method in its process costing system. The Grinding Department started the month with 18,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. An additional 98,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 115,000 units were completed in the Grinding Department and transferred to the next processing department. There were 1,000 units in the ending work in process inventory of the Grinding Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Grinding Department for the month?

A. 115,000

B. 81,000

C. 113,400

D. 115,200

In a job-order costing system, the use of indirect materials that have been previously purchased is recorded as a credit to

A. Finished Goods inventory.

B. Raw Materials inventory.

C. Work in Process inventory.

D. Manufacturing Overhead.