Figure 4-1
Walter Company Uses a Job-Order Costing System to Account

question 10

Multiple Choice

Figure 4-1
Walter Company uses a job-order costing system to account for product costs. The following information pertains to 2011: $\begin{array}{lr}\text { Materials placed into production } & £ 140,000 \\\text { Indirect labour } & 40,000 \\\text { Direct labour (10,000 hours) } & 160,000 \\\text { Depreciation of factory building } & 60,000 \\\text { Other factory overhead } & 100,000 \\\text { Increase in work-in-progress inventory } & 30,000\end{array}$ Factory overhead rate is £18 per direct labour hour.
-Refer to Figure 4-1. What is the total amount credited to Materials (Stores ledger account) for Walter in 2011?

• A)£480,000
• B)£170,000
• C)£140,000
• D)£110,000

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Definitions:

Tradable Emissions Permits

Rights to emit a specific amount of a pollutant that can be bought and sold, used as a market-based approach to controlling pollution.

Supply and Demand

Supply and demand are economic principles describing the relationship between the quantity of a commodity available and the quantity that consumers are willing and able to purchase.

Permit Price

The cost associated with acquiring a license or permit to engage in a certain activity or operation, often seen in environmental regulations or zoning laws.

Tradable Emissions Permits

Market-based allowances to emit a certain amount of pollution, which companies can buy or sell depending on their need to emit more or less than their allocation.