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:

Ethnography

A qualitative research method focused on the systematic study of people and cultures from the insider’s perspective, through observation and interviews.

Manufacturing Company

A business specialized in the production of goods using labor, machines, tools, and chemical or biological processing.

Geertz's

Referring to the work or theoretical contributions of Clifford Geertz, an American anthropologist known for his interpretative approach to culture.

Webs of Significance

A concept in cultural anthropology that signifies the intricate and interconnected symbols and meanings in a society.