Question
Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,000 of direct materials, $6,966 of direct labor,
Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,000 of direct materials, $6,966 of direct labor, and $9,992 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.80 per direct labor-hour. During May, the following activity was recorded: Raw materials (all direct materials): Beginning balance $ 8,700 Purchased during the month $38,200 Used in production $39,500 Labor: Direct labor-hours worked during the month 2,100 Direct labor cost incurred $24,710 Actual manufacturing overhead costs incurred $33,500 Inventories: Raw materials, May 30 ? Work in process, May 30 $16,989 Work in process inventory on May 30 contains $3,777 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The cost of goods manufactured for May was: The cost of goods manufactured for May was: Multiple Choice $105,659 O $97,150 $103,690 $110,640
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