The Following Account Balances Has Been Extracted from Jimbob Co

question 25

Multiple Choice

The following account balances has been extracted from Jimbob Co.'s general ledger: $$\begin{array} { | l | r | } \hline \text { Direct materials used in production } & \$ 200,000 \\\hline \text { Depreciation factory building } & \$ 10,000 \\\hline \text { Depreciation factory equipment } & \$ 50,000 \\\hline \text { Depreciation sales department automobiles } & \$ 10,000 \\\hline \text { Direct wages factory employees } & \$ 200,000 \\\hline \text { Sales department salaries and commissions } & \$ 150,000 \\\hline \text { Factory manager's salary } & \$ 50,000 \\\hline \text { Utility costs factory } & \$ 50,000 \\\hline \text { Utility costs sales office } & \$ 20,000 \\\hline\end{array}$$ What was the total of manufacturing costs?

• A)$510,000.
• B)$740,000.
• C)$560,000.
• D)$400,000.

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Definitions:

Record The Income

This process involves documenting all revenue or income received by an individual or business for accounting and tax reporting purposes.

Repair

Costs incurred to restore an asset to its previous working condition or to maintain its current operating condition without improving it.

Payment

The transfer of money or goods from one party to another as an exchange for goods, services, or to fulfill a legal obligation.

Standard Deduction

A fixed dollar amount that reduces the income on which an individual is taxed, and varies according to filing status, with no itemization required.