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TB MC Qu. 10B-59 (Static) Jakeman Corporation manufactures... Jakeman Corpormtion manufactures one product. it does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventocies are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. There is no variable manufacturing overhead. The standard cost card for the company's only product is as folows: The standard foxed manutacturing overheod rate was based on budgeted fixed manufacturing ovemead of $351,000 and budgeted actlity of 27,000 hours During the year, the company completed the following transactions: a. Purchased 76,600 galions of raw materiat at a price of $7,90 per gallon. b. Used 70,960 gallons of the raw material to produce 20,900 units of work in process. c. Assigned direct labor costs to work in process. The direct labor workers (who wore paid in cash) worked 18,710 hours at an average cost of $19.40 per hour. d. Applied fued overhead to the 20,900 units in work in process inventory using the predetermined overhead rate multiplied by the number of direct labor-hours allomed Actual fixed overhesd costs for the year were $334,600. Of this total, $252.600 related to items such as insurance, utilities, and indirect labor salaries that were all poid in cash and $82,000 related to depreciation of manufacturing equipment. e. Comploted and transferred 20,900 units trom work in process to finished goods. t. Sold (for cast) 17,700 units to customers at a price of $74.30 per unit. 9. Transferred the standard cost associsted with the 17.700 units soid from finished goods to cost of goods sold h. Pald $93.000 of selling and administrative expenses 1. Closed all standard cost yariances to cost of goods sold. To answer the following questions, it would be advisabie to record transoctions a through i in the woiksheet below. This worksheet is similar to the worksheets in your text except that it has been spit into two parts to fit on the page. PpgE inet stands for Property. Plant, and Equipment net of depreciation. When the compony closes iss standard cont variances, the Cost or Goods Sold wa increaso (decrease) by. h in the worksheet below. This worksheet is similar to the worksheets in your text erty. Plant, and Equipment net of depreciation. ease (decrease) by: When the company closes its standard cost variances, the Cost of Goods Sold will increase (decrease) by: Multiple Choice ($90.070) 5154,489 $90,070 ($154,489) The adjusted Cost of Goods Sold after closing all of the variances to Cost of Goods Sold will be closest to: The net operating income for the year is closest to: Mulple Chaice $45,952 $128.636 $226.034 5783.125

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