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

---

Definitions:

Warehouse

A large building where raw materials or manufactured goods are stored before their distribution for sale.

Title

Refers to the legal right to own, use, or sell a particular property or asset.

Binder

A written, temporary insurance policy.

Temporary Coverage

A provisional or short-term insurance policy providing limited benefits until a more permanent insurance arrangement is implemented.