During 2019, Durham Manufacturing Expected Job No

question 69

Multiple Choice

During 2019, Durham Manufacturing expected Job No. 51 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Durham applied overhead based on direct labor cost. Actual production required an overhead cost of $295,000, $570,000 in materials used, and $220,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

• A) $1,090,000
• B) $1,120,000
• C) $1,000,000
• D) $1,085,000

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Definitions:

Craft Shows

Events where artisans and craftsmen display and sell their handmade goods.

Split-Off Point

The stage in the production process where joint products can be recognized as separate products.

Financial Advantage

The benefit obtained in financial terms, giving an entity a superior position relative to competitors or market average.

Intermediate Products

Goods that are produced by a business as part of the production process of another final product or service.