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

question 146

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.
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Use the T-accounts shown above to record the transactions, and then answer the following question:
After transaction number 4, what was the balance in the Raw and in-process inventory account?

• A) $24,000
• B) $22,000
• C) $15,000
• D) $25,000

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Definitions:

Family Systems Therapy

A branch of psychotherapy that views psychological problems and their treatment in the context of the family unit's dynamics.

Psychoanalysis

A set of psychological theories and therapeutic methods which aim to explore the unconscious mind, originally developed by Sigmund Freud.

Cognitive Therapy

A type of psychotherapy that emphasizes the importance of thought patterns in influencing behavior and emotions, aiming to alter negative thoughts.

Humanistic Therapy

A therapeutic approach that emphasizes personal growth and self-fulfillment by focusing on the client's subjective experience and innate potential.