Denver Company Uses a Job Costing System

question 121

Multiple Choice

Denver Company uses a job costing system. The work in process inventory on December 31 consisted of Job No. 173 with a balance of $66,900. Job No. 173 has been charged with manufacturing overhead costs of $20,500. Denver allocates manufacturing overhead costs at a rate of 50% of direct labor cost. What was the amount of direct materials charged to Job No. 173?

• A)$10,250
• B)$12,950
• C)$5400
• D)$7550

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Definitions:

Benefit Corporation

A type of for-profit corporate entity that includes positive impact on society, workers, the community, and the environment in addition to profit as its legally defined goals.

Public Benefit

A positive impact or contribution to the wellbeing of the general public or community at large.

Materially Affected

A condition in which a party's rights, duties, or interests are significantly influenced or altered, typically in a legal or financial context.

Bylaws

The rules and regulations enacted by an organization or community to provide a framework for its operations and management.