The Work in Process Inventory Account of a Manufacturing Corporation

question 58

Multiple Choice

The Work in Process inventory account of a manufacturing Corporation shows a balance of $18,000 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of $6,000 and $3,000 for materials, and charges of $4,000 and $2,000 for direct labor. From this information, it appears that the Corporation is using a predetermined overhead rate, as a percentage of direct labor costs, of:

• A)50%
• B)200%
• C)300%
• D)20%

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Definitions:

Revenue Generation

The process of earning income from business activities, often involving sales of goods or services, strategic partnerships, and other financial activities.

Microloans

Small loans typically offered to individuals or small businesses in underserved communities or developing countries to foster entrepreneurship.

Short-Term Loans

Loans that are meant to be repaid in a short period of time, typically less than a year, used to address immediate financial needs.

Poverty

The state of being extremely poor, where individuals or communities lack the financial resources for basic needs such as food, shelter, and healthcare.