Occi-Predictions Manufactures Weather Forecasting Circuits for Meteorologists and Uses a Job-Order

question 122

Multiple Choice

Occi-Predictions manufactures weather forecasting circuits for meteorologists and uses a job-order costing system. During June, Occi-Predictions accounts included the following balances and transactions: $$\begin{array} { l r l r } \text { Raw materials inventory, beginning } & \$ 700 & \text { Direct materials purchased } & \$ 45,000 \\\text { Raw materials inventory, ending } & 4,850 & \text { Direct labor cost incurred } & 16,400 \\\text { Manufacturing overhead cost applied } & 9,500 & \text { Administrative expenses } & 13,000 \\\text { Marketing expenses } & 11,000 & \text { Work in process inventory, beginning } & 7,800 \\\text { Sales } & 98,000 & \text { Work in process inventory, ending } & 6,600\end{array}$$ How much is the cost of direct materials issued to production during June?

• A) $45,000
• B) $45,700
• C) $49,150
• D) $40,850

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Definitions:

UCC

Uniform Commercial Code; a set of laws that govern commercial transactions in the United States.

Transfer Warranty

Guarantees made by the seller about the quality and title of goods being sold, ensuring they are free from any claims and encumbrances.

Remotely Created Checks

Checks that are created by the payee using the payer’s bank account information, without the payer’s direct signature, often used for telephone or online transactions.

Implies

Suggests or indicates something without expressing it directly.