Question

4) Dacosta Corporation had only one job in process on May 1. The job had been charged 4) with $2800 of direct materials, S6966 of direct labor, and $10,216 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $20.40 per direct labor-hour. During May, the following activity was recorded: Raw materials (all direct materials) Beginning balance Purchased during the month Used in production Labor: Direct labor-hours worked during the month Direct labor cost incurred Actual manufacturing overhead costs incurred Inventories Raw materials, May 30 Work in process, May 30 $ 9500 $ 39,000 s 40,300 2900 s 25,510 S 34,300 S 17,197 Work in process inventory on May 30 contains $3921 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The cost of goods manufactured for May was: A) $124,970 B) $110,800 C) $97,310 D) $127,755

Answer 1