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Maverick Company Had the Following Transactions Last Year

Question 79

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

Correct Answer:

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