Ralph Company Uses a Job-Order Costing System and Has the Following

question 53

Multiple Choice

Ralph Company uses a job-order costing system and has the following data available: What is the cost of the ending inventory of Direct Materials?

• A)$84,000
• B)$90,000
• C)$108,000
• D)$174,000

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Definitions:

Estimated Overhead Cost

Estimated overhead cost refers to a projection or forecast of the total indirect expenses that will be incurred during a specified period in the production process.

Internal Failure Cost

Costs incurred due to defects that are identified before the products are shipped to customers, including scrap and rework costs.

Quality Training

Educational programs and initiatives focused on improving the quality of products, services, and processes within an organization, often aimed at enhancing customer satisfaction.

Scrap Costs

Expenses associated with the disposal of waste materials or byproducts produced during the manufacturing process.