Leak Enterprises LLC Recorded the Following Transactions for the Just

question 47

Multiple Choice

Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories.
(1) Raw materials purchased for cash, $96,000
(2) Direct materials requisitioned for use in production, $69,000
(3) Indirect materials requisitioned for use in production, $22,000
(4) Direct labor wages incurred and paid, $129,000
(5) Indirect labor wages incurred and paid, $16,000
(6) Additional manufacturing overhead costs incurred and paid, $121,000
(7) Manufacturing overhead costs applied to jobs, $163,000
(8) All of the jobs in process were completed.
(9) All of the completed jobs were shipped to customers.
(10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.
Enter the transactions in the T-accounts below and then answer the following questions.

-The adjusted cost of goods sold for the month is:

• A) $335,000
• B) $361,000
• C) $357,000
• D) $365,000

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Definitions:

Tax Imposed

The act of levying or enforcing a financial charge or other levy upon a taxpayer by a governmental organization.

Supply of Labor

The sum of hours employees are prepared and available to work at a specified rate of pay, within a certain timeframe.

Monopsony

A market condition where there is only one buyer for many sellers, giving the buyer significant control over prices and terms.

Labor Supply Curve

A graphical representation showing the relationship between the number of hours worked by individuals and the wage rate, indicating how many hours they are willing to work at a given wage.