Walter Company Uses a Job-Order Costing System to Account for Product

question 51

Multiple Choice

Walter Company uses a job-order costing system to account for product costs. The following information pertains to the current year:
$\begin{array}{lr}\text { Materials placed into production } & \$ 140,000 \\\text { Indirect labour } & 40,000 \\\text { Direct labour (10,000 hours) } & 160,000 \\\text { Depreciation of factory building } & 60,000 \\\text { Other factory overhead } & 100,000 \\\text { Increase in work-in-process inventory } & 30,000\end{array}$
Factory overhead rate is $18 per direct labour hour.
-Refer to the figure.What is the total amount debited to finished goods inventory?

• A)$450,000
• B)$490,000
• C)$510,000
• D)$550,000

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Definitions:

Assignment

The passing of obligations, rights, or property from one individual to another.

Adjudicated Incompetent

A legal status determined by a court, indicating that an individual lacks the capacity to manage their own affairs due to mental or physical impairment.

Capacity

Refers to the legal ability of a person to enter into binding contracts.

Judicial Lien

A judicial lien is a lien obtained by a creditor through court action, usually after winning a judgment against the debtor, granting the creditor a legal claim on the debtor's property as security for the debt.