Lanyard Company uses a job-order costing system to account for product costs. The following information pertains...

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Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2016: $14

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Answer 1

Answer #1

C) $450,000

Explanation:

Material Placed into production	$140,000
Add: Indirect Labor (applied on cost allocation base)	$0
Add: Direct Labor	$160,000
Add: Depreciation of factory building (not a part of finished goods inventory)	$0
Add: Other Factory Overheads (applied on cost allocation base)	$0
Add: Factory Overheads (10,000 direct labor hours @ $ 18 per hour)	$180,000
Total	$480,000
Less: Increase in Work-in-process Inventory	($30,000)
Amount Debited to finished goods inventory	$450,000

Note: To answer the question in correct spirit, year 2011 in the the question is assumed to be replaced with the year 2016. It is an error clearly evident from the facts of the question. If not assumed so, it will not be possible to solve the question with the given facts.

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Answer 2

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