Killian Corporation Began Operations on January 1

question 71

Multiple Choice

Killian Corporation began operations on January 1. The predetermined overhead rate was set at $6.00 per direct labor-hour. Debits to Work in Process for the year totaled $550,000. Credits to Work in Process totaled $480,000. Analysis of the Corporation's records indicate that direct labor cost totaled $250,000 for the year, which represents 20,000 direct labor-hours. The direct materials used in production during the year totaled:

• A)$180,000
• B)$240,000
• C)$130,000
• D)$120,000

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Definitions:

Retail Method

An inventory valuation method based on the retail price of goods, used primarily in the retail sector.

Estimated Inventory

is an approximation of the quantity or value of stock on hand, often used for accounting or planning purposes when an actual count is not feasible.

Bean Corporation

A hypothetical name, often used as an example for a company in discussions or illustrations.

Internal Control Objectives

The goals or purposes of systems and processes designed to safeguard assets, ensure accurate financial reporting, and promote operational efficiency.