Archetype Fabrication Makes Pre-Stressed Concrete Forms for the Building Industry

question 76

Multiple Choice

Archetype Fabrication makes pre-stressed concrete forms for the building industry. They use just-in-time production and accounting methodology. At the beginning of January, selected account balances are shown in the T-accounts below. During January, the following 5 transactions take place:
1) Purchase $40,000 of materials on account.
2) Pay out $25,000 of direct labor costs.
3) Incur $9,000 of manufacturing overhead costs.
4) Complete 12 units. Each unit includes $1,500 of materials, $300 of direct labor, and $150 of manufacturing overhead costs.
5) Sell 10 of the 12 completed units at a price of $2,200.
-
Use the T-accounts shown above to record the transactions, and then answer the following question:
After transaction number 5, what was the balance in the Finished goods inventory account?

• A) $3,900
• B) $7,400
• C) $13,900
• D) $6,900

---

Definitions:

Structural Similarity

A measure used to assess the similarity between two or more structures, often used in image processing and analysis.

Analogy

A comparison between two different things, highlighting similarities for the purpose of explanation or clarification.

Surface Similarity

The extent to which objects share superficial attributes, which can affect how they are grouped in perception and memory tasks.

Mental Set

A tendency to approach situations in a way that has been successful in the past, potentially hindering the ability to find alternative solutions.