Maverick Company Had the Following Transactions Last Year

question 61

Multiple Choice

Maverick Company had the following transactions last year:
1.Raw materials issued from storeroom,$140,000 (90% direct materials,10% indirect materials) .
2.Factory utility costs incurred,$35,000.
3.Employee salaries and wages incurred,$200,000 (80% direct labor,10% indirect labor and 10% selling,general,and administrative) .
4.Depreciation on factory equipment,$30,000.
5.Depreciation on autos used by the sales staff,$15,000.
6.Overhead was applied to production at a rate of 50% of direct labor cost.
7.Goods costing $310,000 according to their job cost sheets were completed.
-The total cost charged to jobs during the year was:

• A)$366,000
• B)$340,000
• C)$420,000
• D)$286,000

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Definitions:

Audit

Audit refers to the systematic examination and verification of a company's financial records, typically conducted by an independent party, to ensure accuracy and compliance with financial regulations and standards.

Customer's Right

The legal entitlements and protections afforded to customers when purchasing goods and services.

Multiple Sclerosis

A chronic autoimmune disease affecting the central nervous system, leading to varying levels of physical and cognitive disabilities.

Side Effects

Secondary, often unintended consequences of a process, action, or medication, which can be either beneficial or harmful.