Figure 5-8

question 127

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. What is the cost of goods sold for September?

• A) $5,129
• B) $8,206.40
• C) $5,720
• D) $3,575
• E) $8,586

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Definitions:

Profit

An interest in land giving a person the right to enter land owned by another and remove natural resources (e.g., timber) from the land. Also called profit à prendre.

Easement

A right granted to use the real property of another for a specific purpose, such as right of way or access to utilities.

Part of the Land

An integral component or feature of a piece of real estate that is considered permanently attached to the land and is included in its legal definition.

Right

An interest given and protected by law. In corporation law, an option to purchase shares given to existing shareholders, permitting them to buy quantities of newly issued securities in proportion to their current ownership.