If cost of goods manufactured is greater than total manufacturing costs added, then which of the following is true?

a.

direct materials inventory increased during the period

b.

direct materials inventory decreased during the period

c.

finished goods inventory increased during the period

d.

work in process decreased during the period

2

Trenton worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $40,000 and total manufacturing costs of $60,000. If Trenton applies overhead at 150% of direct labour cost, the overhead applied to job no. 403 must have been:

a.

$8,000.

b.

$6,000

c.

$4,000.

d.

$12,000.

e.

None of the above