Freiling Corporation Manufactures One Product

question 124

Multiple Choice

Freiling Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows: During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 14,890 hours at an average cost of $22.80 per hour.Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.
When recording the direct labor costs, the Cash account will increase (decrease) by:

• A) $339,492
• B) ($318,780)
• C) $318,780
• D) ($339,492)

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Definitions:

Ocean

A vast body of salt water that covers approximately 71% of the Earth's surface, divided into five major oceans.

Working Class

A socioeconomic group consisting of individuals engaged in manual labor or industrial work, often recognized for their role in the production process and the economy.

Political Power

The ability or capacity of a person or group to influence or control the actions, policies, or decisions of others, typically within a governmental or organizational context.

Industrialization

The process of transforming economies from primarily agricultural to one based on the manufacturing of goods, involving mechanization and factory production.