Meyers Corporation Had the Following Inventory Balances at the Beginning

question 65

Multiple Choice

Meyers Corporation had the following inventory balances at the beginning and end of November: During November, $39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $8 per direct labor-hour, and it paid its direct labor workers $10 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $4,700 of direct materials cost. The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The direct materials cost in the November 1 Work in Process inventory account totaled:

• A)$6,600
• B)$6,000
• C)$3,600
• D)$3,000

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Definitions:

Ceteris Paribus Assumption

A Latin term meaning "all other things being equal," used in economics to isolate the effect of one variable on another by holding all other relevant factors constant.

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Economic Theory

A framework or set of principles used to analyze and make predictions about economic behaviors and phenomena.

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The scenario reflecting the unemployment rate among teenagers, often highlighting challenges in job market access and entry-level job availability for young individuals.