The Following Account Balances at the Beginning of January Were

question 234

Multiple Choice

The following account balances at the beginning of January were selected from the general ledger of Sailor Manufacturing Company: Work in process inventory $0
Raw materials inventory $26,000
Finished goods inventory $46,000
Additional data:
1) Actual manufacturing overhead for January amounted to $62,000.
2) Total direct labor cost for January was $57,000.
3) The predetermined manufacturing overhead rate is based on direct labor cost.The budget for the year called for $300,000 of direct labor cost and $360,000 of manufacturing overhead costs.
4) The only job unfinished on January 31 was Job No.1002,for which total direct labor charges were $6,300 (800 direct labor hours) and total direct material charges were $12,000.
5) Cost of direct materials placed in production during January totaled $101,000.There were no indirect material requisitions during January.
6) January 31 balance in raw materials inventory was $32,000.
7) Finished goods inventory balance on January 31 was $34,500.
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What is the amount of materials purchased during January?

• A)$101,000
• B)$133,000
• C)$107,000
• D)$ 43,000

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Definitions:

Financial Statement Column(s)

Columns in financial statements where various financial data are reported, such as assets, liabilities, revenues, and expenses.

Net Income

The net income of a company once all costs and taxes are subtracted from the total income.

Beginning Inventory

The estimated financial value of items ready to be sold at the onset of a ledger year.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific moment, showing assets, liabilities, and shareholders' equity.