Shankland Corporation Manufactures One Product

question 35

Multiple Choice

Shankland Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company 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.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows:
The standard fixed manufacturing overhead rate was based on budgeted fixed manufacturing overhead of $67,500 and budgeted activity of 7,500 hours.During the year,24,600 units were started and completed.Actual fixed overhead costs for the year were $84,800.
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 applying fixed manufacturing overhead to production,the Work in Process inventory account will increase (decrease) by:

• A) $110,700
• B) ($6,800)
• C) ($110,700)
• D) $6,800

Understand the characteristics and benefits of various types of Certificates of Deposit (CDs).

Identify the liquidity of different financial accounts and understand their impact on personal finance management.

Calculate the rate of return on savings and understand the effects of interest rates on savings and loans.

Reconcile bank statements and checkbook balances, and understand the concept of outstanding checks.

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Definitions:

Insulin

A hormone produced by the pancreas that regulates blood glucose levels by facilitating the uptake of glucose into cells.

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Dialysis is a medical process that removes waste products and excess fluid from the blood when the kidneys are not able to perform these functions naturally.

Chronic Obstructive Pulmonary Disease (COPD)

A group of progressive lung diseases, including emphysema and chronic bronchitis, characterized by long-term breathing problems.

Blood Gas Values

Measurements of oxygen, carbon dioxide, and pH levels in the blood, used to assess and manage respiratory and metabolic disorders.