During 2017 Durham Manufacturing Expected Job No

question 72

Multiple Choice

During 2017 Durham Manufacturing expected Job No. 51 to cost $300000 of overhead $500000 of materials and $200000 in labor. Durham applied overhead based on direct labor cost. Actual production required an overhead cost of $295000 $570000 in materials used and $220000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

• A) $1090000
• B) $1120000
• C) $1000000
• D) $1085000

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Definitions:

Independent Project

A project whose acceptance or rejection does not directly affect the decision to undertake other projects.

Conventional Cash Flows

Conventional Cash Flows refer to a pattern of cash flows where an initial investment is followed by a series of positive cash inflows, typical of most investment projects.

Net Present Value

A financial metric that calculates the present value of all cash inflows and outflows associated with an investment, considering the time value of money.

Capital Budgeting

The process by which investors determine the value of potential investments or projects by assessing the cash inflows and outflows associated with them.