A Company Using a Standard Costing System Uses an Actual

question 36

Multiple Choice

A company using a standard costing system uses an actual quantity of 1100 kg of material at an actual cost of $1.20 per kg. The standard quantity allowed was 1000 kg at a standard cost of $1.00 per kg. After the goods are completed and transferred from work in process inventory, what is the cost of direct material that would appear in finished goods inventory?

• A) $1000
• B) $1100
• C) $1200
• D) $1320

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Definitions:

Shares Outstanding

The total number of shares of stock that have been issued and are currently held by shareholders, including both public investors and restricted company insiders.

Reacquired

Reacquired refers to the act of a company buying back its own shares from the marketplace, usually to increase shareholder value or to take advantage of perceived undervaluation.

Sarbanes-Oxley Act

A U.S. law passed in 2002 to protect investors by making corporate disclosures more reliable and accurate, aiming to prevent corporate fraud.

Corporate Shares

Financial instruments representing ownership in a company, typically entitling the shareholder to a portion of the profits.