Rally Point Inc -Refer to Rally Point,Inc

question 69

Multiple Choice

Rally Point Inc. designs and builds volleyball gymnasiums. Each gymnasium is custom-built to an individual customer's specifications. Rally Point uses job-order costing to track its costs. In January, Rally Point worked on three jobs. Data for these jobs are as follows:
Overhead is applied to jobs at the rate of $25 per machine hour. By January 31, Job 200 is the only job unfinished. The balance of finished goods on January 1 is $63,290 (consisting of Job 100 only) . Jobs 100 and 300 are sold during January. Rally Point sells its product at cost plus 40%.
$\begin{array}{lrrrr}&\text { Job } 100&\text { Job } 200&\text { Job } 300\\\text { Balance } 1 / 1 & \$ 13,790 & \$ 0 & \$ 0 \\\text { Direct Materials } & 16,200 & 8,500 & 30,500 \\\text { Direct Labour Cost } & 23,300 & 7,600 & 45,000 \\\text { Machine Hours } & 400 & 300 & 2,000\end{array}$
-Refer to Rally Point,Inc.What is the balance in the work-in-process account on January 31?

• A)$0
• B)$16,100
• C)$23,600
• D)$212,390

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Definitions:

Benefit

The advantage or profit gained from something, often used in the context of analyzing economic decisions.

Second Job

Additional employment taken by an individual besides their primary job, often to supplement income.

Full Time

Employment status in which an individual works a minimum number of hours defined by their employer, typically at least 35 to 40 hours per week.

Business Profits

The financial gain made by a business, which is the excess of revenues over expenses.