1. Reilly Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #8, #12, and #15.

Raw material used	$130,000
Direct labor per hour	$9.50
Overhead applied based on direct labor cost	125%

Direct material was requisitioned as follows for each job respectively: 25 percent, 30 percent, and 30 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,800; 3,300; and 4,000; respectively. Indirect labor is $45,000. Other actual overhead costs totaled $50,000.

Refer to Reilly Company. If Job #15 is completed and transferred, what is the balance in Work in Process Inventory at the end of the period if overhead is applied at the end of the period?

Select one:

a. $191,925

b. $201,888

c. $205,284

d. $208,908

2. Knight Products has no Work in Process or Finished Goods inventories at the close of business on December 31 of the current year. The balances of Knight Products accounts as of December 31 are as follows:

Cost of goods sold--unadjusted	$2,040,000
Selling & administrative expenses	$900,000
Sales	$3,600,000
Manufacturing overhead control	$700,000
Manufacturing overhead applied	$648,000

Pretax income for the current year is:

Select one:

a. $660,000

b. $712,000.

c. $608,000

d. undeterminable from the information given.