Stock CoUses a Job Order Costing System A) $3,000
B) $5,200

question 105

Multiple Choice

Stock Co.uses a job order costing system.The following debits (credits) appeared in Stock's work-in-process account for the month of April: Stock applies overhead to production at a predetermined rate of 80% of direct labor cost.Job No.5,the only job still in process on April 30 has been charged with direct labor of $2,000.What was the amount of direct material charged to Job No.5? (CPA adapted)
$$\begin{array} { | r | l | r | } \hline \text { April } & \text { Description } & \text { Amount } \\\hline 1 & \text { Balance } & \$ 4,000 \\\hline 30 & \text { Direct materials } & 24,000 \\\hline 30 & \text { Direct labor } & 16,000 \\\hline 30 & \text { Factory overhead } & 12,800 \\\hline 30 & \text { To finished goods } & ( 48,000 ) \\\hline\end{array}$$

• A) $3,000.
• B) $5,200.
• C) $8,800.
• D) $24,000.

---

Definitions:

Immediate And Irrational

Decisions or reactions that occur without logical reasoning or deliberation, often driven by instinct or emotion.

Limbic System

A complex system of nerves and networks in the brain, involved in emotions and drives, including fear, pleasure, and anger.

Stress Hormones

Chemicals released in the body in response to stress, such as cortisol and adrenaline, that prepare the body to act in a fight-or-flight scenario.

Vulnerable

The state of being susceptible to physical or emotional harm or injury.