Question
Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,200 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 $2,200 of direct materials, $6,966 of direct labor, and $10,048 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $19.20 per direct labor-hour.
During May, the following activity was recorded:
Work in process inventory on May 30 contains $3,813 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.
The cost of goods manufactured for May was:
A) $97,190
B) $110,680
C) $108,770
D) $110,943
Raw materials (all direct materials) Beginning balance Purchased during the month Used in production $8,900 $38,400 $39,700 Labor: Direct labor-hours worked during the month 2,300 $24,910 $33,700 Direct labor cost incurred Actual manufacturing overhead costs incurred Inventories: Raw materials, May 30 Work in process, May 30 $17,041
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