The Accounts of Delphinia Dreams,Inc During the Month,direct Materials Amounting to $21,000 and Indirect Materials

question 9

Multiple Choice

The accounts of Delphinia Dreams,Inc.showed the following balances at the beginning of October: $$\begin{array} { | l | r | } \hline \text { Account } & \text { Debit } \\\hline \text { Raw Materials Inventory } & \$ 31,000 \\\hline \text { Work-in-Process Inventory } & 44,000 \\\hline \text { Finished Goods Inventory } & 54,000 \\\hline \text { Manufacturing Overhead } & 20,000 \\\hline\end{array}$$ During the month,direct materials amounting to $21,000 and indirect materials amounting to $6,000 were issued to production.What is the ending balance in the Work-in-Process Inventory account following these two transactions?

• A)$44,000
• B)$65,000
• C)$10,000
• D)$26,000

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Definitions:

Expected Opportunity Loss

The anticipated value of the best foregone opportunity when a particular decision is made.

Gross Profits

Total revenue of a company minus the cost of goods sold, not including other operating expenses.

Payoff Table

A table that lists the possible outcomes of different decisions, often used in decision analysis to compare the implications of various strategies.

Expected Opportunity Loss

The average loss resulting from not choosing the best alternative in decision-making under uncertainty.