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

question 57

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 amount of direct materials cost in the March 31 work in process inventory account was:

• A)$3,850.
• B)$5,150.
• C)$9,350.
• D)$9,000.

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Definitions:

Structural Theory

A theory in psychology and psychoanalysis that divides the psyche into three distinct parts (id, ego, and superego), each with its own roles and dynamics.

Freud

The founder of psychoanalysis, a discipline concerning the study of unconscious motivations and conflicts.

Neurotic Personality

A personality type characterized by chronic anxiety, emotional instability, and a tendency towards internalized psychological distress.

Psychoanalytic Theory

A set of psychological and psychotherapeutic theories and techniques, which primarily focus on unconscious motivations and conflicts.