Answer the Following Questions Using the Information Below:
Wagga Wagga

question 75

Multiple Choice

Answer the following questions using the information below:
Wagga Wagga Textiles is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year.The following estimates are provided for the coming year for the company and for the Tumut Brass Band band jacket job.
$$\begin{array} { l c c } \text { Company } & \text { Tumut Brass } & \text { Band Job } \\\text { Direct materials } & \$ 40000 & \$ 1000 \\\text { Direct labour } & \$ 10000 & \$ 200 \\\text { Manufacturing overhead costs } & & \$ 30000 \\\text { Machine-hours } & 100000 \mathrm { mh } & 900 \mathrm { mh }\end{array}$$
-What are the total manufacturing costs of this job?

• A)$1650
• B)$1470
• C)$1920
• D)$1200

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Definitions:

Beginning Inventory

The value of a company’s inventory at the start of an accounting period, before any purchases or sales have occurred.

Quarterly

occurring every three months or four times a year, often used to describe the periodic reporting schedule of businesses and investments.

Cost of Goods Sold

The expenditure directly associated with producing a company's sold goods, covering materials and labor involved.

Beginning Inventory

The value of an entity’s inventory at the start of an accounting period.