$\begin{array}{cc}\text { Raw Material}\\\hline\begin{array}{ll|l} 9 / 1 & 12,000\\\end{array}\end{array}\quad$ $\begin{array}{cc}\text { Work in Process }\\\text { Inventory}\\\hline\begin{array}{ll|l}9 / 1 & 4,500 \\\end{array}\end{array}\quad$

question 37

Multiple Choice

$\begin{array}{cc}\text { Raw Material}\\\hline\begin{array}{ll|l} 9 / 1 & 12,000\\\end{array}\end{array}\quad$$\begin{array}{cc}\text { Work in Process }\\\text { Inventory}\\\hline\begin{array}{ll|l}9 / 1 & 4,500 \\\end{array}\end{array}\quad$$\begin{array}{cc}\text { Work in Process }\\\text { Inventory}\\\hline\begin{array}{ll|l}9 / 1 & 4,500\\\end{array}\end{array}$

$\begin{array}{cc}\text { Overhead } \\\text { Cost Control } \\\hline\begin{array}{ll|l}&14,800& \\\end{array}\end{array}\quad$$\begin{array}{cc}\text { Accounts } \\\text { Payable } \\\hline\begin{array}{ll|l}&&8,000&9/30 \\\end{array}\end{array}$ • The overhead is allocated to jobs using an estimated rate applied to direct labour hours. The budget for the year called for $180,000 of overhead cost and 60,000 direct labour hours.
• Accounts payable is used for materials only. The balance on 9/1 was $6,000. September's payments were $40,000.
• September 1 finished goods inventory was $11,000.
• Cost of jobs completed in September was $89,000.
• On September 30 there was a single job unfinished, consisting of $1,800 (300 hours) of direct labour and $2,600 of direct material.
• 5,200 direct hours were worked during September. All workers earn the same rate of pay.
• All actual overhead costs incurred have been recorded.
Materials purchased in September were:

• A) $43,000
• B) $48,000
• C) $54,000
• D) $42,000

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Definitions:

Bonds Dated

The date specified in the bond document when the bond was issued, important for determining interest payments and maturity.

Fair Value

An estimate of the price at which an asset would be bought or sold in a current transaction between willing parties, not under compulsion.

Market Price

The prevailing market rate at which transactions for assets or services are conducted.

Investment Sold

The act of divesting an asset or security, converting an investment back into cash or its cash equivalent.