Reference: 03-01
Wayne Company Uses a Job-Order Costing System and Applies

question 62

Multiple Choice

Reference: 03-01
Wayne Company uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate based on direct labour-hours. The company had the following inventories at the beginning and end of March: $$\begin{array}{l}\begin{array} { | l | l | l | } \hline & \text { March 1 } & \text { March 31 } \\\hline \text { Direct Materials } & \$ 36,000 & \$ 30,000 \\\hline \text { Work in Process } & 18,000 & 12,000 \\\hline \text { Finished Goods } & 54,000 & 72,000 \\\hline\end{array}\\\text { The following additional data pertain to operations during March: }\\\begin{array} { | l | l | l | } \hline \text { Direct materials purchased } & \$ 84,000 & \\\hline \text { Direct labour cost } & \$ 60,000 & \\\hline \text { Direct labour rate } & \$ 7.50 & \text { per direct labour-hour } \\\hline \text { Overhead rate } & \$ 10.00 & \text { per direct labour-hour } \\\hline\end{array}\end{array}$$
-The Cost of Goods Manufactured for March was:

• A)$218,000.
• B)$230,000.
• C)$236,000.
• D)$212,000.

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Definitions:

Organization's Approach

The methods, practices, and principles a company adopts in executing its business activities, including its strategies, culture, and management systems.

Focused Processes

Specialized operational techniques aimed at improving efficiency and effectiveness in specific areas of production or service delivery.

Specialization

The process of focusing on and becoming expert in a particular subject or skill.

Flexibility

The ability to adapt to changes, challenges, or new requirements quickly and effectively.