D&I Supplies,Inc.selected cost data for the year are shown below:

Assuming manufacturing overhead costs of $27,820,what is the amount of direct labor incurred by D&I Supplies,Inc.during the year?
A)$63,980
B)$190,810
C)$60,990
D)$129,820

Question

D&I Supplies,Inc.selected cost data for the year are shown below:

Assuming manufacturing overhead costs of $27,820,what is the amount of direct labor incurred by D&I Supplies,Inc.during the year?
A)$63,980 
B)$190,810 
C)$60,990 
D)$129,820

Quizplus · Accepted Answer

C)Total Manufacturing Cost = Ending Work-in-Process Inventory + Cost of Goods Manufactured - Beginning Work-in-Process Inventory = $2,870 + $193,800 - $5,860 = $190,810
Direct labor costs = Total Manufacturing Cost - Manufacturing overhead costs - Direct Materials Used = $190,810 - $27,820 - $102,000 = $60,990