Reference: 03-10
Summit Company Has Provided the Following Inventory Balances

Reference: 03-10
Summit Company has provided the following inventory balances and manufacturing cost data for the month of
January: $$\begin{array}{l}\begin{array} { | c | l | l | } \hline \text { Inventories: } & \text { January 1 } & \text { January } 31 \\\hline \text { Direct materials } & \$ 30,000 & \$ 40,000 \\\hline \text { Work in process } & \$ 15,000 & \$ 20,000 \\\hline \text { Finished goods } & \$ 65,000 & \$ 50,000 \\\hline\end{array}\\\\\begin{array} { | l | l | } \hline & \text { Month of January } \\\hline \text { Cost of goods manufactured } & \$ 515,000 \\\hline \text { Manufacturing overhead applied } & \$ 150,000 \\\hline \text { Direct materials used } & \$ 190,000 \\\hline \text { Actual manufacturing overhead } & \$ 144,000 \\\hline\end{array}\end{array}$$ Under Summit's job-order costing system, any overapplied or underapplied overhead is closed to the Cost of
Goods Sold account at the end of the calendar year .
-How much direct labour cost was incurred during January?

A) $170,000.
B) $186,000.
C) $180,000.
D) $175,000.