At the Beginning of 2015, Conway Manufacturing Had the Following

question 51

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 unadjusted balance in the Manufacturing Overhead account is a:

• A) credit of $295,000.
• B) credit of $5,000.
• C) debit of $5,000.
• D) debit of $13,000.

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Definitions:

Subcontractors

Companies or individuals hired by a general contractor to perform specific tasks as part of a larger project.

Materialmen

Suppliers or sellers of materials, especially in construction, that provide goods on credit to contractors or builders.

Surety

A person or entity that takes responsibility for another's performance of an obligation or the payment of a debt in case of default.

Farm Property

is categorically land and tangible assets used in farming and agricultural operations.