Reedy Company Reports the Following Information for 2012: Factory

question 162

Multiple Choice

Reedy Company reports the following information for 2012: Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, 2012, is:

• A) $16,250
• B) $8,500
• C) $18,750
• D) $13,500

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Definitions:

Form 1099-MISC

A document used to report miscellaneous income such as payments made to independent contractors, rent, or awards.

Payer

An entity or individual who makes a payment to another.

Rental Properties

Real estate properties rented out to tenants, generating income for the owner which must be reported for tax purposes.

Schedule E

Schedule E is a tax form used by landlords, S corporation shareholders, and partners in partnerships to report their share of income, losses, and deductions.