The Samuelson Company Uses a Job-Order Costing System Overhead Is Charged to Production at 70% of the Direct

question 31

Multiple Choice

The Samuelson Company uses a job-order costing system. The following data were recorded for June: $\begin{array}{|l|l|l|l|}\hline & \text { June } 1 & \text { Added During June } \\\hline \text { Job Number } & \begin{array}{l}\text { Work in Process } \\\text { Inventory }\end{array} & \text { Direct Material } & \text {Direct Labour } \\\hline 475 & \$ 1,000 & \$ 400 & \$ 200 \\\hline 476 & \$ 900 & \$ 600 & \$ 800 \\\hline 477 & \$ 800 & \$ 900 & \$ 1,400 \\\hline 478 & \$ 600 & \$ 1,100 & \$ 1,900 \\\hline\end{array}$ Overhead is charged to production at 70% of the direct materials cost. Jobs 475, 477, and 478 have been delivered to the customer.
Samuelson's Work in Process inventory balance on June 30 was:

• A)$2,300.
• B)$2,860.
• C)$2,720.
• D)$6,450.

---

Definitions:

Government Intervention

Actions taken by a government to influence or directly regulate various activities within its economic systems.

Taxes

Required financial dues or other levy types enforced on taxpayers by governmental institutions, intended to support government funding and multiple public spending purposes.

Average Price Level

An index that summarizes prices across a variety of goods and services within an economy at a given time, providing a snapshot of overall price trends.

Imports

Goods or services brought into one country from another for the purpose of trade.