The Samuelson Company Uses a Job-Order Costing System

question 7

Multiple Choice

The Samuelson Company uses a job-order costing system.The following data were recorded for June: Overhead is charged to production at 70% of the direct materials cost.Jobs 475,477,and 478 have been delivered to the customer. Samuelson's Work in Process inventory balance on June 30 was:

• A) $2,300.
• B) $2,720.
• C) $2,860.
• D) $6,450.

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Definitions:

Traditional Costing

An accounting method that allocates overhead costs to products based on a predetermined overhead rate and the volume of goods produced.

Overhead Assigned

Refers to the allocation of indirect costs to products, services, or cost centers.

Product U4

Product U4 is a designated name for a specific product, possibly indicating its position or type within a wider range of products offered by a company or manufacturer.

Traditional Costing

A costing methodology that assigns overhead costs to products based on a predetermined rate, often using direct labor hours as the allocation base.