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Accounting Help, Three Multiple Choice The balances in White Company's Work in Process inventory account were $15,000 on August 1 and $18,000 on August 31.
Accounting Help, Three Multiple Choice
The balances in White Company's Work in Process inventory account were $15,000 on August 1 and $18,000 on August 31. The company incurred dollar 30,000 in direct labour cost during August and requisitioned dollar 25,000 in raw materials (all direct material). The sum of the debits to the Manufacturing Overhead account totalled dollar 28,000 for the month while the sum of the credits totalled dollar 30,000. Which of the following statements about finished goods inventory and manufacturing overhead is correct? Manufacturing Overhead was under applied by dollar 2,000 at the end of the month Finished Goods was debited for dollar 52,000 during the month. Finished Goods was credited for dollar 82,000 during the month Finished Goods was debited for dollar 82,000 during the month. Last month, when 10,000 units of a product were manufactured, the cost per unit was dollar 60. At this level of activity, variable costs were 50% of total unit costs. If 10,500 units are manufactured next month and cost behavior patterns remain unchanged, how will costs be affected? Total cost per unitwill decrease. Variable cost per unitwill increase. Total variable costs will remain unchanged. Fixed costs will increase in total. During the month of June. Reardon Company incurs dollar 17,000 of direct labor and dollar 8,500 of manufacturing overhead, and purchases dollar 15,000 of raw materials. Between the beginning and the end of the month, the raw-materials inventory increases by dollar 2,000. the finished goods inventory increases by dollar 1,500, and the work-in-process inventory decreases by dollar 3,000. What is the cost of goods manufactured? dollar 41,500. dollar 43,500. dollar 40,500. dollar 38,500Step by Step Solution
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