On January 1, 2012, Matthew Company's Work in Process Inventory

question 56

Multiple Choice

On January 1, 2012, Matthew Company's work in process inventory account had a balance of $30,000. During 2012, $58,000 of direct materials was placed into production. Manufacturing wages incurred amounted to $84,000, of which $66,000 were for direct labor. Manufacturing overhead is allocated on the basis of 120% of direct labor cost. Actual manufacturing overhead was $90,000. Jobs costing $220,400 were completed during 2009. What is the December 31, 2012 balance in work in process inventory?

• A) $16,800
• B) $34,800
• C) $6,000
• D) $12,800

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Definitions:

Execution

The process of carrying out a plan, order, or course of action to achieve a specific outcome.

Strategy

An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals.

Leadership

The ability to guide, direct, or influence people toward the achievement of a goal or an objective.

Marketing Effort

The total activities and strategies employed by a company to promote and sell its products or services to its target market.