Tyare Corporation had the following inventory balances at the beginning and end of May: During May, $61,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 350 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,300 of direct materials cost. The Corporation incurred $42,750 of actual manufacturing overhead cost during the month and applied $41,100 in manufacturing overhead cost.The amount of direct labor cost in the May 30 Work in Process inventory was:
A) $4,260
B) $5,325
C) $4,975
D) $9,585

Question

Tyare Corporation had the following inventory balances at the beginning and end of May:  During May, $61,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 350 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,300 of direct materials cost. The Corporation incurred $42,750 of actual manufacturing overhead cost during the month and applied $41,100 in manufacturing overhead cost.The amount of direct labor cost in the May 30 Work in Process inventory was:
A) $4,260 
B) $5,325 
C) $4,975 
D) $9,585

Quizplus · Accepted Answer

The Answer of Tyare Corporation had the following inventory balances at the beginning and end of May:  During May, $61,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 350 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,300 of direct materials cost. The Corporation incurred $42,750 of actual manufacturing overhead cost during the month and applied $41,100 in manufacturing overhead cost.The amount of direct labor cost in the May 30 Work in Process inventory was:
A) $4,260 
B) $5,325 
C) $4,975 
D) $9,585

Tyare Corporation Had the Following Inventory Balances at the Beginning