The Samuelson Company Uses a Job-Order Costing System Overhead Is Charged to Production at 70% of the Direct

question 10

Multiple Choice

The Samuelson Company uses a job-order costing system.The following data were recorded for June:
$\begin{array}{|l|r|r|r|}\hline & &{\text { Added During June }} \\\hline \text { Job Number } & \begin{array}{r}\text { Work in Process } \\\text { Inventory, June 1 }\end{array} & \text { Direct Materials } & \text { Direct Labour } \\\hline 475 & \$ 1,000 & \$ 400 & \$ 200 \\\hline 476 & 900 & 600 & 800 \\\hline 477 & 800 & 900 & 1,400 \\\hline 478 & 600 & 1,000 & 1,900 \\\hline\end{array}$
Overhead is charged to production at 70% of the direct materials cost.Jobs 475,477,and 478 have been delivered to the customer.What was Samuelson's Work in Process inventory balance for Job 476 on June 30?

• A) $6,450.
• B) $2,860.
• C) $2,300.
• D) $2,720.

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Definitions:

Expected Net Income

The projected profit of a business after all expenses and taxes have been deducted from total revenue.

Sales Commission

A fee paid to sales personnel, often calculated as a percentage of the sales they generate.

Machine-Hours

A unit of measure for the amount of work or operation time a machine has completed or is expected to complete.

Maintenance Cost

The expenses associated with upkeep, including repairs and preventive measures, to ensure the efficient operation of assets.