Whirl 'N Twirl Corporation Uses a Job Costing System

Multiple Choice

Whirl 'n Twirl Corporation uses a job costing system. On January 1, Whirl 'n Twirl Corporation's work in process inventory account had a balance of $62,000. During the year, materials requisitioned for use in production amounted to $110,000, of which $79,000 represented direct materials. Factory wages for the period were $242,000, of which $199,000 were for direct labour. Manufacturing overhead is allocated on the basis of 80% of direct labour cost. Actual overhead cost for the year was $125,000. Jobs costing $350,000 were completed during the year. The December 31 work in process inventory balance is

A) $403,000.
B) $158,000.
C) $115,000.
D) $149,200.