Lanyard Company Uses a Job-Order Costing System to Account for Product

question 124

Multiple Choice

Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2018: $$\begin{array} { l r } \text { Materials placed into production } & \$ 140,000 \\\text { Indirect labor } & 40,000 \\\text { Direct labor (10,000 hours) } & 160,000 \\\text { Depreciation of factory buil ding } & 60,000 \\\text { Other factory overhead } & 100,000 \\\text { Increase in work-in-process inventory } & 30,000\end{array}$$
Factory overhead rate is $18 per direct labor hour.
What is the total amount credited to Materials Inventory for Lanyard in 2018?

• A)$480,000
• B)$170,000
• C)$140,000
• D)$110,000

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Definitions:

CAM Plants

Plants that utilize Crassulacean Acid Metabolism, an adaptation for photosynthesis in arid conditions.

Organisms

Any contiguous living system, such as an animal, plant, fungus, archaeon, or bacterium.

C4 Plants

A group of plants that utilize a specialized mechanism for photosynthesis, enhancing their ability to capture carbon dioxide and thrive in hot, dry environments.

CAM Plants

Plants that utilize Crassulacean Acid Metabolism, an adaptive photosynthesis strategy to minimize water loss in arid conditions by opening stomata at night.