XO,Inc.reports the following cost information for March: $$\begin{array} { | l | r | }
\hline \text { Cost of Goods Manufactured } & \$ 71,000 \
\hline \text { Manufacturing Overhead } & 18,300 \
\hline \text { Finished Goods Inventory, March 1 } & 4,000 \
\hline \text { Finished Goods Inventory, March 31 } & 2,000 \
\hline \text { Work-in-Process Inventory, March 1 } & 9,970 \
\hline \text { Work-in-Process Inventory, March 31 } & 1,240 \
\hline \text { Direct Materials Used } & 25,020 \
\hline
\end{array}$$
What is the amount of direct labor incurred by XO in March?
A) $62,270
B) $6,720
C) $71,000
D) $18,950

Question

XO,Inc.reports the following cost information for March: $$\begin{array} { | l | r | } 
\hline \text { Cost of Goods Manufactured } & \$ 71,000 \
\hline \text { Manufacturing Overhead } & 18,300 \
\hline \text { Finished Goods Inventory, March 1 } & 4,000 \
\hline \text { Finished Goods Inventory, March 31 } & 2,000 \
\hline \text { Work-in-Process Inventory, March 1 } & 9,970 \
\hline \text { Work-in-Process Inventory, March 31 } & 1,240 \
\hline \text { Direct Materials Used } & 25,020 \
\hline
\end{array}$$
 What is the amount of direct labor incurred by XO in March?
A) $62,270
B) $6,720
C) $71,000
D) $18,950

Quizplus · Accepted Answer

The amount of direct labor can be calculated by subtracting the sum of direct materials used and manufacturing overhead from the cost of goods manufactured. Thus, direct labor = $71,000 (Cost of Goods Manufactured) - $25,020 (Direct Materials Used) - $18,300 (Manufacturing Overhead) = $27,680. However, none of the provided options match this calculation, indicating a possible mistake in the question or in the interpretation of the provided data. Given the options, none directly correspond to the calculated amount, suggesting a need for clarification or review of the provided choices.

XO,IncReports the Following Cost Information for March What Is the Amount of Direct Labor Incurred by XO