On 1 January 2013, Matthew Company's Work in Process Inventory

question 16

Multiple Choice

On 1 January 2013, Matthew Company's work in process inventory account had a balance of $30 000. During 2013, $58 000 of direct materials was placed into production. Manufacturing wages incurred amounted to $84 000, of which $66 000 were for direct labour. Manufacturing overhead is allocated on the basis of 120% of direct labour cost. Actual manufacturing overhead was $90 000. Jobs costing $220 400 were completed during 2013. What is the 31 December 2013 balance in work in process inventory?

• A)$12 800
• B)$6 000
• C)$34 800
• D)$16 800

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Definitions:

Job Evaluation

An administrative procedure for measuring the relative internal worth of the organization's jobs.

Pay Structures

The organization of different levels of pay within a company or organization, based on roles, responsibilities, and performance.

Significant

Refers to something that is important, meaningful, or consequential within a particular context or study.

Position Analysis Questionnaire

A standardized job analysis instrument that evaluates job characteristics and relates them to human characteristics.