Deco Corporation Uses a Job Costing System

question 284

Multiple Choice

Deco Corporation uses a job costing system.On January 1,Deco Corporation's work in process inventory account had a balance of $75,000.During the year,materials requisitioned for use in production amounted to $120,000,of which $82,000 represented direct materials.Factory wages for the period were $231,000,of which $219,000 were for direct labor.Manufacturing overhead is allocated on the basis of 85% of direct labor cost.Actual overhead cost for the year was $125,000.Jobs costing $345,000 were completed during the year.
The December 31 work in process inventory balance is

• A)$426,000.
• B)$217,150.
• C)$156,000.
• D)$168,000.

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Definitions:

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