During June, Buttrey Corporation Incurred $78,000 of Direct Labor Costs

question 34

Multiple Choice

During June, Buttrey Corporation incurred $78,000 of direct labor costs and $18,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:

• A) debit to Work in Process of $78,000.
• B) credit to Work in Process of $96,000.
• C) debit to Work in Process of $96,000.
• D) credit to Work in Process of $78,000.

Understand the accumulation of job costs and the flow of costs in a job order costing system.

Calculate overhead rates and apply overhead to jobs using predetermined rates.

Differentiate between direct and indirect costs and understand the role of each in job costing.

Calculate the total cost of a job using direct materials, direct labor, and applied overhead.

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Definitions:

Pelagius

A theologian of the late 4th and early 5th centuries, known for his teachings on free will and his opposition to the doctrine of original sin.

Augustine

An early Christian theologian and philosopher known for his writings that influenced the development of Western Christianity and Western philosophy.

Faith

In the popular sense, a belief in something for which you have inadequate evidence or little good reason. In theology, faith usually refers to the trust a believer should have in God’s ultimate grace and fairness. Sometimes, faith is defended as a rational belief in God (for example, in Kant). More often, faith is defended against rationality (as in Kierkegaard).

Good Works

Actions or deeds that reflect moral virtue and contribute positively to the wellbeing of others.