1. Trenton worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $49,900 and total manufacturing costs of $61,000.

If Trenton applies overhead at 150% of direct labor cost, the overhead applied to job no. 403 must have been:

$0.

$6,660.

$4,440.

$3,700.

$5,550.

2. If a company sells goods that cost $104,000 for $120,600, the firm will:

reduce Finished-Goods Inventory by $104,000.

reduce Finished-Goods Inventory by $120,600.

report sales revenue on the balance sheet of $120,600.

reduce Cost of Goods Sold by $104,000.

follow more than one of the above procedures.