Occi-Predictions Manufactures Weather Forecasting Circuits for Meteorologists and Uses a Job-Order

question 70

Multiple Choice

Occi-Predictions manufactures weather forecasting circuits for meteorologists and uses a job-order costing system.During June, Occi-Predictions accounts included the following balances and transactions: $\begin{array}{lrlr}\text { Raw Materials Inventory, beginning } & \$ 700 & \text { Direct materials purchased } & \$ 45,000 \\\text { Raw Materials Inventory, ending } & 4,850 & \text { Direct labor cost incurred } & 16,400 \\\text { Manufacturing overhead cost applied } & 9,500 & \text { Administrative expenses } & 13,000 \\\text { Marketing expenses } & 11,000 & \text { Work in Process Inventory, beginning } & 7,800 \\\text { Sales } & 98,000 & \text { Work in Process Inventory, ending } & 6,600\end{array}$ How much is the cost of direct materials issued to production during June?

• A)$45,000
• B)$45,700
• C)$49,150
• D)$40,850

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Definitions:

System 1

This refers to a concept in psychology, specifically in the dual-process theory of thought, where System 1 is the fast, instinctive, and emotional way of thinking.

Availability Heuristic

A cognitive bias where individuals rely on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Cognitive Biases

Misperceptions or misunderstandings that cause systematic errors. Most result either (1) from heuristics that are prone to systematic errors or (2) because the brain is attempting to solve a type of problem (such as a calculus problem) for which it was not evolutionarily evolved and for which it has little innate capability.

Media Coverage

The reporting and analysis of news and information by various media outlets, influencing public perception and awareness of events and issues.