To Follow Is Selected Financial Data from Harmon Manufacturing for the Most

question 78

Multiple Choice

To follow is selected financial data from Harmon Manufacturing for the most recent year. $\begin{array}{|l|cc|}\hline \text { Ending raw materials inventory } & \$ & 19,000 \\\hline \text { Ending work in process inventory } & \$ & 42,000 \\\hline \text { Ending finished goods inventory } & \$ & 54,100 \\\hline \begin{array}{l}\text { Amount of underallocated manufacturing } \\\text { overhead }\end{array} & \$ & 3,100 \\\hline \text { Cost of goods sold for year } & \$ & 81,000 \\\hline \text { Cost of raw materials purchased during year } & \$ & 45,300 \\\hline \text { Cost of direct materials requisitioned during year } & \$ & 41,700 \\\hline \begin{array}{l}\text { Cost of indirect materials requisitioned during } \\\text { year }\end{array} & \$ & 7,100 \\\hline \text { Cost of goods completed during year } & \$ & 110,000 \\\hline \text { Manufacturing overhead allocated } & \$ & 60,000 \\\hline \text { Manufacturing overhead \% of direct labor cost } & & 125 \% \\\hline\end{array}$

- What is the beginning work in process inventory?

• A)$17,000
• B)$50,300
• C)$53,400
• D)$ 2,300

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Definitions:

Performance Standards

The expected levels of performance that set the benchmark for the quality and effectiveness of work activities or outcomes.

Incentive Systems

Programs or strategies designed to motivate and reward employees in order to enhance their performance and productivity.

Establishing

The process of setting up or starting something, such as a business, a relationship, or a system.

Piecework

Work paid according to the number of units produced