Whirl 'N Twirl Corporation Uses a Job Costing System

question 53

Multiple Choice

Whirl 'n Twirl Corporation uses a job costing system. On January 1, Whirl 'n Twirl Corporation's work in process inventory account had a balance of $62,000. During the year, materials requisitioned for use in production amounted to $110,000, of which $79,000 represented direct materials. Factory wages for the period were $242,000, of which $199,000 were for direct labour. Manufacturing overhead is allocated on the basis of 80% of direct labour cost. Actual overhead cost for the year was $125,000. Jobs costing $350,000 were completed during the year. The December 31 work in process inventory balance is

• A) $403,000.
• B) $158,000.
• C) $115,000.
• D) $149,200.

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Definitions:

Merocrine

A type of exocrine gland secretion where cells secrete their substances by exocytosis without losing cellular material.

Apocrine

A type of gland that releases its secretions by pinching off a portion of the cell, found mainly in the underarm and groin area, contributing to body odor when the secretion is broken down by bacteria.

Exocytosis

A cellular process in which substances are moved out of the cell through the fusion of vesicles with the plasma membrane.

Endocrine Gland

Glands of the endocrine system that secrete hormones directly into the bloodstream, regulating various body functions.