Questions 6, 7, 8, 9 & 10 refer to the following data:

The Pinetree Company produces pinewood furniture to order. On 1 January 19X5, work in process consisted of Job 875 with assigned costs totalling $8000. The following information is available regarding January activities:

Raw materials costing $35 000 and factory supplies costing $6000 were purchased on account. A single inventory account is used for raw materials and supplies.

Materials and supplies were requisitioned as follows:

875	$ 2 000
876	15 000
877	12 000
Total raw materials	29 000
Factory supplies	3 000
Total	$32 000

The following labour costs were incurred:

875	$ 5 000
876	10 000
877	6 000
Total direct labour	21 000
Indirect labour & factory supervision	7 000
$28 000
	Factory overhead costs, other than factory supplies, indirect labour and factory supervision, were: Depreciation on plant & equipment $1000 Utilities $5000 Miscellaneous $800 Total: $6800 Jobs 875 and 876 were completed and sold at the contracted prices of 80% and 100% mark-up on costs respectively, while Job 877 is not yet completed. On an annual basis, estimated total overhead is equal to $80000+ 0.5(direct labour dollars). Estimated 19X5 direct labour is $320 000. Overhead is allocated on a direct labour dollar basis.

1. The closing balance of the Work-in-Process account at 31 January is:

A $65 750

B $51 250

C $14 500

D $22 500

1. The total cost of Job 875 is:

A $32 500

B $15 000

C $22 500

D $18 750

8. The gross profit/loss on Job 876 was:

A $22 500

B $32 500

C $40 500

D $33 750

9. The fixed overhead allocated to Job 877 was:

A Zero

B $6000

C $4500

D $1500

10. The amount of overhead over- or under-allocated for January is:

A $15 750 over-allocated

B $1050 under-allocated

C $1050 over-allocated

D $15 750 under-allocated

calculation process required