The Work in Process Inventory Account of a Manufacturing Company

question 90

Multiple Choice

The Work in Process inventory account of a manufacturing company 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 company 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:

Deposit

A deposit is a sum of money placed in an account or given to a party as security for the fulfillment of a contract, often refundable after certain conditions are met.

Check Stub

A check stub is the part of a check that is kept as a record by the issuer, detailing the amount, date, and payee of the check.

Cash Balance

The amount of currency that a company or individual has on hand, including deposits in bank accounts that are available for immediate use.

Deposit

A sum of money placed into an account or given as partial payment to secure a purchase or service.