Kirsch Corporation's Standard Wage Rate Is $13

question 8

Multiple Choice

Kirsch Corporation's standard wage rate is $13.40 per direct labor-hour (DLH) and according to the standards, each unit of output requires 8.9 DLHs. In May, 5,000 units were produced, the actual wage rate was $12.80 per DLH, and the actual hours were 41,790 DLHs. In the journal entry to record the incurrence of direct labor costs in May, the Work in Process entry would consist of a:

• A) debit of $596,300.
• B) debit of $534,912.
• C) credit of $534,912.
• D) credit of $596,300.

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Definitions:

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the company's profits and a right to vote on management decisions.

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security at a predetermined price before a specific date.

Convertibles

Convertibles are bonds or preferred stocks that can be converted into a predetermined number of common stock or equity shares.

Coupon Rate

The percentage rate at which a bond's face value accrues interest each year.