Archetype Fabrication Makes Pre-Stressed Concrete Forms for the Building Industry

question 84

Multiple Choice

Archetype Fabrication makes pre-stressed concrete forms for the building industry. They use just-in-time production and accounting methodology. At the beginning of January, selected account balances are shown in the T-accounts below. During January, the following 5 transactions take place:
Use the T-accounts shown above to record the transactions, and then answer the following question:
After transaction number 3, what was the balance in the Raw and in-process inventory account?

• A)$40,000
• B)$76,000
• C)$67,000
• D)$42,000

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Definitions:

Trade Deficits

An economic condition that occurs when a country imports more goods and services than it exports.

National Debt

The total amount of money that a country's government has borrowed, usually as a result of deficit spending.

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in successive quarters.

Business Form

The legal structure of a company, such as sole proprietorship, partnership, or corporation, which determines liability and tax obligations.