Freiling Corporation Manufactures One Product

question 112

Multiple Choice

Freiling 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. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:
During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 14,890 hours at an average cost of $22.80 per hour.
Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.

-When recording the direct labor costs,the Work in Process inventory account will increase (decrease) by:

• A) $318,780
• B) ($339,492)
• C) $339,492
• D) ($318,780)

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Definitions:

Freud

Refers to Sigmund Freud, the founding father of psychoanalysis, a method for treating psychopathology and a theory which explains human behavior.

Jung

Refers to Carl Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts such as the collective unconscious and archetypes.

Entropy Principle

A concept often related to thermodynamics and information theory, referring to the measure of disorder or randomness in a system. In psychology, it may relate to the complexity and unpredictability of human behavior and thought.

Differentiation Principle

In psychology, this refers to the process through which individuals develop a stronger sense of self by distinguishing themselves from others.