Jane Industries Manufactures Plastic Toys

question 113

Multiple Choice

Jane Industries manufactures plastic toys. During October, Jane's Fabrication Department started work on 10,400 models. During the month, the company completed 11,200 models, and transferred them to the Distribution Department. The company ended the month with 2200 models in ending inventory. There were 3000 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is being followed. Beginning work in process was 30% complete as to conversion costs, while ending work in process was 55% complete as to conversion costs.

What is the amount of direct materials cost assigned to ending work-in-process inventory at the end of October?
(Round intermediary calculations to the nearest cent.)

• A) $19,783
• B) $20,337
• C) $10,923
• D) $14,916

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Definitions:

Auto Supply

Businesses or stores that specialize in providing parts, tools, and accessories for automobiles.

Ultra Vires

Acts or transactions conducted by a corporation that fall outside the scope of powers and purposes defined by its charter or laws; such acts may be invalid or unauthorized.

Clayton Act

The Clayton Act is a U.S. antitrust law, enacted in 1914, aimed at promoting competition and preventing monopolies by addressing specific practices not covered by the Sherman Act.

Interlocking Directorates

In antitrust law, a situation that occurs when individuals serve as directors for two corporations that are competitors.