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:

Distressing Emotions

Emotional states that cause discomfort or pain, negatively affecting an individual's mental well-being.

State-dependent Memory

The phenomenon where information learned in a particular state of mind (e.g., emotional, psychological, or physical) is more easily recalled when in the same state.

Associative Memory

The ability to learn and remember the relationship between unrelated items.

Déjà Vu

That eerie sense that “I’ve experienced this before.” Cues from the current situation may subconsciously trigger retrieval of an earlier experience.