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7. The work in process account for Chambers Company contained the following entr

ID: 2486322 • Letter: 7

Question

7. The work in process account for Chambers Company contained the following entries: Debit of $80,000 for direct raw materials Debit of $120,000 for direct labor Debit of $60,000 for manufacturing overhead Ending balance, $84,000, associated with Job #2 The company uses a job-order cost system. Work was only performed on two jobs during the period. The beginning balance in work in process was zero. What was the cost of Job #1, which was started and completed during the period?

$148,000

$132,000

$180,000

$176,000

13.

raig Manufacturing Company operates its three production departments within a single facility. Each department produces its own products and maintains its own production equipment. Although they share a common facility, each department is overseen by a separate supervisor. Which one of the following costs is a direct cost of each department?

Lease payment on facility

Plant manager salary

Production supervisor salary

Depreciation on the facility

1.

Explanation / Answer

Answer 1 $1,76,000

Answer - 2

Since each department is overseen by a Separate Supervisor, Production supervisor salary is a direct cost of each department.

Answer - 3

Raw material Inventory will be decreased by $142 and WIP inventory will be increased by $142

Direct Raw material $80,000 Direct Labour $1,20,000 Manufacturing Overhead $60,000 Less Ending Balance -$84,000 Started abd completed during the Year $1,76,000
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