At the Beginning of 2015, Conway Manufacturing Had the Following

question 92

Multiple Choice

At the beginning of 2015, Conway Manufacturing had the following account balances: Following additional details are provided for the year: $$\begin{array} { | l | l | } \hline \text { Direct materials placed in production } & \$ 80,000 \\\hline \text { Direct labor incurred } & 190,000 \\\hline \text { Manufacturing overhead incurred } & 300,000 \\\hline \text { Manufacturing overhead allocated to production } & 295,000 \\\hline \text { Cost of jobs completed and transferred } & 500,000 \\\hline\end{array}$$ The ending balance in the Work-in-Process Inventory account is a:

• A) credit of $67,000.
• B) debit of $65,000.
• C) credit of $65,000.
• D) debit of $67,000.

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Definitions:

Net Operating Income

A financial metric indicating the profitability of a business's core operations, calculated by subtracting operating expenses from gross income.

Contribution Format Income Statement

An income statement that separates fixed and variable costs, highlighting the contribution margin of sales over variable expenses, useful for decision-making and breakeven analysis.

Net Operating Income

The profit realized from a business's operations after subtracting all operating expenses from operating revenues.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, used to cover fixed costs and contribute to net profits.