2. Tyare Corporation had the following inventory balances at the beginning and end of May:

May 1 May 30

Raw materials $ 34,500 $ 48,000

Finished Goods $ 84,000 $ 84,000

Work in Process $ 22,500 $ 17,886

During May, $67,500 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 480 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 $7,950 of direct materials cost. The Corporation incurred $44,700 of actual manufacturing overhead cost during the month and applied $45,000 in manufacturing overhead cost. The direct materials cost in the May 1 Work in Process inventory account totaled:

Multiple Choice: $16,740 $9,540 $15,300 $7,200

4. The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year:

Raw Materials
Beg Bal	5,500		10,000
	5,700

Work in Process
Beg Bal	4,600		22,700
	6,700
	9,000
	8,800

Finished Goods
Beg Bal	2,700		20,900
	22,700

Manufacturing Overhead
	3,300		8,800
	4,000
	3,700

Wages & Salaries Payable
	20,900	Beg Bal	3,000
			13,000

Cost of Goods Sold
Beg Bal	20,900

The direct labor cost was:

• $14,600

• $20,900

• $9,000

• $12,000