Valley Water Slides
Valley Water Slides Makes Custom Water Slides

question 76

Multiple Choice

Valley Water Slides
Valley Water Slides makes custom water slides for hotels. On September 1, three jobs were in process: Jobs 812, 813, and 814. Two more jobs, Jobs 815 and 816, were started during September. By September 30, Jobs 812, 814, and 816 were finished. The following data were collected: $\begin{array}{lrrrrr}&\text { Job } 812&\text { Job } 813&\text { Job } 814&\text { Job } 815&\text { Job } 816\\9 / 1 \text { Balance } & \$ 615 & \$ 830 & \$ 945 & --- & --- \\\text { Direct Materials } & 750 & 235 & 1,280 & \$ 200 & \$ 915 \\\text { Direct Labour } & 420 & 115 & 560 & 320 & 875\end{array}$ Overhead is applied at the rate of 120% of direct labour cost. Jobs are sold at cost plus 60%. Selling and administrative expenses for September totalled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 cancelled the order so the slide is still in the warehouse.
-Refer to Valley Water Slides. What is the sales price of Job 816?

• A) $2,840
• B) $2,864
• C) $3,408
• D) $4,544

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Definitions:

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and potential dividends, but with lower priority in bankruptcy.

Par Value

The face value of a bond or stock as stated on the certificate or instrument, which does not necessarily reflect its market value.

Fair Value

The proceeds from divesting an asset or the expense for reallocating a liability in a conventional transaction between market stakeholders at the calculation date.

Investment Account

An account held at a financial institution that is used to buy and hold various investment securities, such as stocks and bonds.