Bennington Company applies manufacturing overhead by using a predetermined rate of 120% of direct labor cost. The data that follow pertain to job no. 831: Direct material cost $83,000
Direct labor cost 41,000
If Bennington adds a 20% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the credit sale ofjob no. 831?
Account Debited Amount
A. Accounts Receivable $173,200
B. Accounts Receivable $207,840
C. Finished-Goods Inventory $173,200
D. Finished-Goods Inventory $207,840
E. Sales Revenue $207,840
Multiple Choice
a. Choice A
b. Choice B
c. Choice C
d. Choice D
e. Choice E

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