Reference: 03-03
Meyers Company Had the Following Inventory Balances at the Beginning

question 99

Multiple Choice

Reference: 03-03
Meyers Company had the following inventory balances at the beginning and end of November: $$\begin{array} { | l | l | l | } \hline & \text { November 1 } & \text { November } 30 \\\hline \text { Raw Materials } & \$ 17,000 & \$ 20,000 \\\hline \text { Finished Goods } & \$ 50,000 & \$ 44,000 \\\hline \text { Work in Process } & \$ 9,000 & \$ 11,000 \\\hline\end{array}$$ During November, $39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $8 per direct labour-hour, and it paid its direct labour workers $10 per hour. A total of 300 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 raw materials purchased during November totalled:

• A)$42,000.
• B)$45,000.
• C)$36,000.
• D)$39,000.

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Definitions:

Adaptive Problems

Issues that arise from the inability of an organism to adjust properly to environmental stressors or to adjust its behavior to best suit its environment.

Bounded Rationality

The idea that in decision-making, individuals are limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.

Simple Strategies

Basic methods or approaches used to achieve a goal or solve a problem, often involving straightforward steps.

Irrational Decisions

Choices that are not based on logic or reasoning, often influenced by emotions or incorrect perceptions.