Reference: 03-05
Mallet Company Had Only Job 844 in Process

question 65

Multiple Choice

Reference: 03-05
Mallet Company had only Job 844 in process on March 1 of the current year. The job had been charged with
$2,000 of direct material cost, $2,500 of direct labour cost, and $1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate of 70% of direct labour cost. Any underapplied or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month.
During March, the following activity and amounts were recorded by the company: $$\begin{array} { | l | l | } \hline \text { Raw materials (all direct materials) : } & \\\hline \text { Purchased during the month } & \$ 29,500 \\\hline \text { Used in production } & \$ 30,500 \\\hline & \\\hline \text { Labour: } & \\\hline \text { Direct labour hours worked during the month } & 2,500 \\\hline \text { Direct labour cost incurred } & \$ 26,500 \\\hline \text { Indirect labour costs incurred } & \$ 5,500 \\\hline & \\\hline \text { Manufacturing overhead costs incurred (total) } & \$ 18,500 \\\hline & \\\hline \text { Inventories: } & \\\hline \text { Raw materials (all direct) March 31 } & \$ 7,500 \\\hline \text { Work in process, March 31 } & \$ 14,500 \\\hline\end{array}$$ Work in process inventory contained $5,500 of direct labour cost.
-The balance in the March 1 Raw Materials inventory was:

• A)$9,500.
• B)$6,500.
• C)$8,500.
• D)$10,500.

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Definitions:

Black Families

Refers to family units or kinship groups within the African American community, often studied in the context of sociology and history for their dynamics, structure, and cultural heritage.

Northern Capitalists

Wealthy industrialists and financiers from the northern United States who played a significant role in the country's economic development post-Civil War.

Freedpeople

Individuals who have been released from the condition of slavery, often in the context of the 19th-century United States following the Civil War.

Agricultural Regions

Geographic areas known for a predominant focus on agriculture and farming activities.