Minstrel Manufacturing Uses a Job Order Costing System

question 58

Multiple Choice

Minstrel Manufacturing uses a job order costing system.During one month Minstrel purchased $198,000 of raw materials on credit;issued materials to production of $195,000 of which $30,000 were indirect.Minstrel incurred a factory payroll of $150,000,paid in cash,of which $40,000 was indirect labor.Minstrel uses a predetermined overhead rate of 150% of direct labor cost.The journal entry to record payment of the factory payroll is:

• A)Debit Work in Process Inventory $150,000;credit Factory Wages Payable $150,000.
• B)Debit Work in Process Inventory $150,000;credit Cash $150,000.
• C)Debit Factory Wages Payable $150,000;credit Cash $150,000.
• D)Debit Work in Process Inventory $110,000;debit Factory Overhead $40,000;credit Factory Wages Payable $150,000.
• E)Debit Work in Process Inventory $110,000;debit Factory Overhead $40,000;credit Cash $150,000.

Understand the basic principles of antitrust laws and their application to business practices.

Identify legal and illegal practices under the Sherman Act, the Clayton Act, and other antitrust regulations.

Analyze the effects of monopolistic practices and market power on competition and consumers.

Distinguish between permissible and impermissible trade practices, such as tying arrangements and exclusive dealing contracts.

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Definitions:

T-bill

Short for Treasury bill, a short-term government security issued at a discount from the par value and pays no interest before maturity, but is redeemed at its face value.

Correlation Coefficient

A numerical measure that describes the size and direction of a relationship between two variables.

Capital Market Line

A line used in the capital asset pricing model to illustrate the rates of return for efficient portfolios depending on the risk-free rate of return and the level of risk (standard deviation) for a particular portfolio.

Forecasted Return

The predicted financial return of an investment over a specific period, often based on historical data, current trends, and professional analysis.