The Work in Process Account for Chambers Company Contained the Following

question 34

Multiple Choice

The work in process account for Chambers Company contained the following entries: Debit of $80,000 for direct raw materials
Debit of $120,000 for direct labor
Debit of $60,000 for manufacturing overhead
Ending balance,$84,000,associated with Job #2
The company uses a job-order cost system.Work was only performed on two jobs during the period.The beginning balance in work in process was zero.What was the cost of Job #1,which was started and completed during the period?

• A) $180,000
• B) $148,000
• C) $132,000
• D) $176,000

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Definitions:

Income Effect

How shifts in the financial status of individuals or whole economies affect their purchasing desires for specific goods or services.

Price Increase

An increase in the price of products or services.

Income Effect

Variations in income for persons or within economies and how these variations modify the demand for goods or services.

Consumer's Spending

The total amount of money spent by individuals or households on goods and services within a particular period.