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The Following Account Balances at the Beginning of January Were

question 70

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 work in process inventory balance on January 31?

Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Days Sales In Inventory

A financial metric indicating the average time it takes for a company to turn its inventory into sales, reflecting inventory management efficiency.

Days To Pay Payables

An accounting metric that calculates the average number of days it takes a company to pay its invoices from suppliers, indicating how effectively a company is managing its outgoing cash flow.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.