Karim Corporation Uses a Standard Cost System in Which Inventories

question 32

Multiple Choice

Karim Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.The standard cost card for the company's only product is as follows:
During the year,the company started and completed 31,500 units.Direct labor employees worked 23,650 hours at an average cost of $19.50 per hour.
Assume that all transactions are recorded on a worksheet as shown in the text.On the left-hand side of the equals sign in the worksheet are columns for Cash,Raw Materials,Work in Process,Finished Goods,and PP&E (net) .All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.
When recording the direct labor costs,the Work in Process inventory account will increase (decrease) by:

• A) $474,075
• B) ($474,075)
• C) ($461,175)
• D) $461,175

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Definitions:

Medium-wavelength Cones

Photoreceptor cells in the retina responsible for mediating color vision in moderate to bright light conditions, typically sensitive to wavelengths perceived as green.

Perceive Green

The process of detecting the color green through the visual system, involving specific photoreceptors in the eyes.

Retinex Theory

A color vision theory stating that the brain uses comparative information from different areas of the retina to determine the color and brightness of objects.

Visual Field

The complete scope visible in the side vision when the eye is concentrating on a central spot.