Xtra Company Uses a Job-Order Costing System to Account for Product

question 156

Multiple Choice

Xtra Company uses a job-order costing system to account for product costs. The following information pertains to the current year:
Factory overhead rate is $18 per direct labour hour.
$$\begin{array} { l r } \text { Materials placed into production } & \$ 160,000 \\\text { Indirect labour } & 40,000 \\\text { Direct labour (10,000 hours) } & 180,000 \\\text { Depreciation of factory building } & 60,000 \\\text { Other factory overhead } & 100,000 \\\text { Increase in work-in-process inventory } & 50,000\end{array}$$
-Refer to the Figure.What is the total amount credited to materials inventory for Xtra in the current year?

• A)$110,000
• B)$160,000
• C)$170,000
• D)$480,000

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