Portside Watercraft Uses a Job Order Costing System

question 69

Multiple Choice

Portside Watercraft uses a job order costing system.During one month Portside purchased $173,000 of raw materials on credit; issued materials to production of $164,000,of which $24,000 were indirect.Portside incurred a factory payroll cost of $95,000,of which $25,000 was indirect labor.Portside uses a predetermined overhead rate of 170% of direct labor cost.
-The journal entry to record the issuance of materials to production is:

• A)Debit Raw Materials Inventory $153,000; credit Accounts Payable $153,000.
• B)Debit Work in Process Inventory $140,000; debit Factory Overhead $24,000; credit Raw Materials Inventory $164,000.
• C)Debit Raw Materials Inventory $195,000; credit Work in Process Inventory $195,000.
• D)Debit Work in Process Inventory $140,000; debit Raw Materials Inventory $24,000; credit Materials Inventory $164,000.
• E)Debit Finished Goods Inventory $140,000; credit Raw Materials Inventory $140,000.

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Definitions:

Confidence Level

The probability that a confidence interval will capture the true population parameter, expressed as a percentage.

Population Variance

The average of the squared differences from the Mean, for the entire population.

Zα/2

The z-score that corresponds to the critical value for a two-tailed hypothesis test at a given significance level α.

Maximum Allowable Error

The largest error or deviation from a standard or expected value that is considered acceptable.