Question
The Milo Company's records for May contained the following information: Actual direct labour-hours 9,000 hours Actual direct labour cost $47,000 Direct material purchased 16,000 Direct
The Milo Company's records for May contained the following information:
Actual direct labour-hours 9,000 hours
Actual direct labour cost $47,000
Direct material purchased 16,000
Direct material used 14,000
Cost of goods sold 100,000
Overapplied overhead 5,000
Ending inventories:
Raw materials 30,000
Work in process 50,000
Finished goods 70,000
The company uses a predetermined overhead rate of $5.00 per direct labour hour to apply manufacturing
overhead to jobs.
The cost of raw materials purchased during the year amounted to:
A) $411,000. B) $360,000. C) $336,000. D) $316,000.
Please show work
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