Figure 5-8

question 146

Multiple Choice

Figure 5-8.John's Water Slides makes custom water slides for hotels. On September 1, there were three jobs in process, Jobs 812, 813, and 814. Two more jobs were started during September, Jobs 815 and 816. By September 30, Jobs 812, 814, and 816 were finished. The following data has been collected:
Overhead is applied at the rate of 120% of direct labor cost. Jobs are sold at cost plus 60%. Selling and administrative expenses for September totaled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 decided he did not want the slide so it is still in the warehouse.
-Refer to Figure 5-8. Calculate the ending balance in Work-in-Process as of September 30.

• A) $2,222
• B) $1,700
• C) $1,961
• D) $3,555.20
• E) $1,392

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used for hedging or speculating.

Obligation

A legal or moral duty to complete certain actions or to make payments to others.

Specified Price

Specified Price is the predefined price at which an investor agrees to buy or sell a security or commodity in a futures contract.

Municipal Bond Yields

The return investors can expect to earn if they hold a municipal bond until maturity, often tax-exempt.