Minstrel Manufacturing Uses a Job Order Costing System

question 103

Multiple Choice

Minstrel Manufacturing uses a job order costing system.During one month,Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Minstrel incurred a factory payroll of $150,000,of which $40,000 was indirect labor.Minstrel uses a predetermined overhead rate of 150% of direct labor cost.
-The journal entry to record the purchase of materials is:

• A)Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000.
• B)Debit Work in Process Inventory $198,000; credit Accounts Payable $198,000.
• C)Debit Raw Materials Inventory $198,000; credit Work in Process Inventory $198,000.
• D)Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000.
• E)Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000.

Understand the role of government in providing public goods and addressing externality issues.

Analyze the relationship between marginal cost and marginal social benefit in the context of public goods.

Conceptualize non-excludability and non-rivalry as defining characteristics of public goods.

Apply the principle of marginal social benefit being equal to the sum of individual marginal benefits in determining the efficient provision of public goods.

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Definitions:

Tax-Exempt

Refers to entities or financial instruments that are not subject to tax by governmental authorities.

GDP

Gross Domestic Product, or GDP, is the sum of all goods and services produced inside a nation's boundaries during a certain time frame, serving as a comprehensive indicator of economic performance.

Taxes

Compulsory financial dues or another form of tax applied to an individual by a government entity to support government finances and assorted public outlays.

Country

A separate geographical area or political unit acknowledged as a sovereign state.