Use the Information Below to Answer the Following Question(s) $\quad$

question 8

Multiple Choice

Use the information below to answer the following question(s) .

The following account balances at the beginning of January were selected from the general ledger of Sailor Manufacturing Company:

Work in process inventory $\quad$$\quad$ $0
Raw materials inventory $\quad$$\quad$ $26,000
Finished goods inventory $\quad$$\quad$ $46,000

Additional data:
1) Actual manufacturing overhead for January amounted to $62,000.
2) Total direct labour cost for January was $57,000.
3) The predetermined manufacturing overhead rate is based on direct labour cost. The budget for the year called for $300,000 of direct labour cost and $360,000 of manufacturing overhead costs.
4) The only job unfinished on January 31 was Job No. 1002, for which total direct labour charges were $6,300 (800 direct labour hours) and total direct material charges were $12,000.
5) Cost of direct materials placed in production during January totaled $101,000.
6) January 31 balance in raw materials inventory was $32,000.
7) Finished goods inventory balance on January 31 was $34,500.
-What is the amount of materials purchased during January at Sailor Manufacturing Company?

• A) $101,000
• B) $133,000
• C) $107,000
• D) $43,000

---

Definitions:

Private Practice

The business of a professional practitioner, such as a doctor or lawyer, conducted independently and not as part of an organization or institution.

Business

The practice of engaging in commerce, including the creation, marketing, and sale of goods and services.

Government

The system or group of people governing an organized community, often a state, setting and enforcing laws and policies.

Nerve Cells

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.