TB MC Qu, 10B-35 (Static) Phann Corporation manufactures... Phann Corporason manufoctures one product. it does not maintain any beginning or ending Work in Plocess imventories, The company uses a stanidard cost system in which inventories are fecorded at their standard costs and any variances are closed directly to cost of Goods Sold. There is no variable manufacturing overhead. The standard cort card for the companys only productis os follows The standerd ficed manulacturing overhead fate was based on budgeted fixed manufacturing overhesd of $90,000 and budgeted activity of 7,500 heurs. During the yeoc, the company completed the following transactions: a. Purchased 59,000 kilos of raw material at a price of $9.20 per kilo. b. Used 51,340 kilos of the raw moterial to produce 18.300 units of work in process. c. Assigned direct labor costs to work in process. The direct labor workess (who were paid in cash) worked 8.850 hours at an averoge cost of 52370 per hour. d. Applied foed ovethead to the 18,300 units in work in process inventory using the predetermined overhead rote multipled by the number of direct laborhours aliowed. Actuat foed ovethead costs for the year were $79,400. Of this total, $22,400 related to ltems such as insurance, utlities, and indirect iabor saiaries that were all pald in cash and $57,000 related to depreciaten of manufacturing equipment. e. Completed and transferted 18,300 units from work in process to tifished goods. Assume that all transactions are recorded on the below worksheet which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The begiming bolonces in each of the accounts hove been given. PpgE (sot) stands for Prooerty Plant, and Equitment nat of atonteciation When recording the raw matefials used in production in transaction (b) above, the Work in Process inventory accouat w in incresse (decrease) by: Mitiple Choice 1435300 (\$46290 (435,540) 5.35540