Reference: 03-12
Jimbob Co During April, $36,000 in Raw Materials (All Direct Materials) Were

question 97

Multiple Choice

Reference: 03-12
Jimbob Co. had the following inventory balances at the beginning and end of April: $$\begin{array} { | l | l | l | } \hline & \text { April 1 } & \text { April 30 } \\\hline \text { Raw Materials } & \$ 17,000 & \$ 20,000 \\\hline \text { Finished Goods } & \$ 50,000 & \$ 44,000 \\\hline \text { Work in Process } & \$ 9,000 & \$ 11,000 \\\hline\end{array}$$ During April, $36,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was 80 cents per each direct labour dollar, and it paid its direct labour workers $20 per hour. A total of 150 hours of direct labour time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $4,700 of direct materials cost. The Company incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost.
-The direct materials cost in the April 1 Work in Process inventory account totalled:

• A)$3,000.
• B)$6,000.
• C)$6,600.
• D)$3,600.

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The effective and clear exchange of information, ideas, or feelings between individuals or groups, which facilitates understanding and cooperation.

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Formal processes implemented within organizations to invite, evaluate, and implement recommendations from employees aimed at improving operations.

Upward Communication

The process of information flow from the lower levels of a hierarchy to the higher levels, primarily involving feedback, suggestions, complaints, or reports from employees to management.

Downward Communication

The flow of information and messages from higher levels of an organization's hierarchy to the lower levels.