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

question 4

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 debited to Finished Goods Inventory in 2011?

• A)£490,000
• B)£510,000
• C)£450,000
• D)£550,000

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Definitions:

Business Assets

Resources owned by a business, considered valuable and necessary for its operations and growth, which can be tangible or intangible.

Eminent Domain

The power of the state to expropriate private property for public use, with compensation for the property owner.

Economic Development

The process in which an economy grows or changes and becomes more advanced, specifically in terms of economic output, innovation, and improved living standards.

Slum Areas

Highly populated urban residential areas, typically characterized by poor quality housing and sanitary conditions.