Jamie's Company Is Running a Contest to Encourage Employees to Work

question 26

Multiple Choice

Jamie's company is running a contest to encourage employees to work more hours than required. The employee with the most hours clocked at the end of the week wins a bonus of $400. Jamie is excited when she wins the contest by clocking 57 hours in the contest week instead of her normal 40, because it is a nice addition to the $6 per hour she makes. How much pay will Jamie earn for the week of the contest?

• A)$1048
• B)$640
• C)$803
• D)$1448
• E)$240

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Definitions:

Perpetual

Referring to a continuous inventory system where updates are made in real-time following each sale or purchase transaction.

Revenue

The total amount of money received by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.

Cost Flow Assumptions

Accounting methods that determine how costs are assigned to inventory and cost of goods sold, such as FIFO, LIFO, and average cost.

FIFO

An inventory valuation method where the first items produced or purchased are the first sold, leading to inventory being valued at approximate recent costs.