Meyers Corporation Had the Following Inventory Balances at the Beginning

question 96

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 amount of direct labor cost in the November 30 Work in Process inventory was:

• A)$2,800
• B)$3,300
• C)$3,500
• D)$6,300

---

Definitions:

Deferred Tax Liability

It's a tax obligation that arises from income already earned and recorded for accounting purposes, but payment is deferred to the IRS until a future date.

Subsidiary

An entity that is controlled by a higher entity, usually through majority shareholding, and is included in the financial statements of the controlling entity through consolidation.

Investment

The allocation of resources, usually financial, in expectation of a future return or profit.

Equity

The value of an ownership interest in a company, represented by the portion of the company's assets that would be distributed to shareholders after settling all liabilities.