The Balance in White Company's Work in Process Inventory Account

question 36

Multiple Choice

The balance in White Company's Work in Process inventory account was $15,000 on August 1 and $18,000 on August 31. The company incurred $30,000 in direct labor cost during August and requisitioned $25,000 in raw materials (all direct material) . If the sum of the debits to the Manufacturing Overhead account total $28,000 for the month, and if the sum of the credits totaled $30,000, then:

• A) Finished Goods was debited for $82,000 during the month.
• B) Finished Goods was credited for $83,000 during the month.
• C) Manufacturing Overhead was underapplied by $2,000 at the end of the month.
• D) Finished Goods was debited for $85,000 during the month.

---

Definitions:

High Debt

A situation where an individual or organization carries a heavy financial obligation, often measured relative to income or assets, which can lead to increased risk and financial strain.

Proxy Fight

A fight for control of a corporation when two or more interests compete for the proxies of shareholders in the election of directors.

Shareholders

Individuals or institutions that own share(s) in a corporation, thereby having a claim on its profits and assets.

Board Members

Board members are individuals elected to represent shareholders and oversee the management and major decisions of a corporation.