Brillant Design Company Makes Custom Chairs for Individual Customers

question 46

Multiple Choice

Brillant Design Company makes custom chairs for individual customers.On October 1, there was one job in process, Job 243, with a cost of $1,300.Jobs 244, 245, and 246 were started during the month of October.Data on costs added during the month are as follows: ​
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Overhead is applied to production at the rate of 70% of direct labor cost.Job 245 was completed on October 14 and the client was billed at cost plus 55%.All other jobs remained in process.
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What is the price of Job 245?

• A) $20,204.20
• B) $10,627.70
• C) $22,310.50
• D) $18,761.20
• E) $14,399.50

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Definitions:

Stock Discrepancies

Differences between the amount of inventory recorded and the actual inventory present, often resulting from errors or theft.

Periodic Inventories

An inventory system where the inventory count is conducted at specific intervals to determine the cost of goods sold and ending inventory levels.

Closing Inventories

The total value of unsold goods and materials that a company holds at the end of its financial year, which is recorded as a current asset in the balance sheet.

Product Obsolescence

Occurs when a product becomes outdated and is no longer needed or wanted by consumers, often due to technological advances.