Foxburg Company has the following information:
$$\begin{array} { l c c c }
& \text { Work-in-Process } & \text { Finished Goods } & { \text { Materials } } \
\text { Begirnirg inventory } & \$ 300 & \$ 400 & \$ 500 \
\text { Endirg inventory } & \$ 4700 & \$ 900 & \$ 1,500 \
\text { Purchases of materials } & \$ 7,700 & & \
\text { Cost of Goods Sold } & \$ 15,600 & &\
\text { Manufacturing overhead}&\$ 4,300
\end{array}$$
-
What was the direct labor for the period?
A) $5,500.
B) $5,800.
C) $6,300.
D) $6,800.

Question

Foxburg Company has the following information:
$$\begin{array} { l c c c } 
& \text { Work-in-Process } & \text { Finished Goods } & { \text { Materials } } \
\text { Begirnirg inventory } & \$ 300 & \$ 400 & \$ 500 \
\text { Endirg inventory } & \$ 4700 & \$ 900 & \$ 1,500 \
\text { Purchases of materials } & \$ 7,700 & & \
\text { Cost of Goods Sold } & \$ 15,600 & &\
\text { Manufacturing overhead}&\$ 4,300 
\end{array}$$
-
What was the direct labor for the period?
A) $5,500.
B) $5,800.
C) $6,300.
D) $6,800.

Quizplus · Accepted Answer

The correct answer is A.The cost of goods manufactured is $15,600 + $4,700 - $300 = $20,000. The cost of goods manufactured is equal to the direct materials used, direct labor, and manufacturing overhead. The direct materials used is $7,700 + $500 - $1,500 = $6,700. The manufacturing overhead is $4,300. Therefore, the direct labor is $20,000 - $6,700 - $4,300 = $5,500.

Foxburg Company Has the Following Information - What Was the Direct Labor for the Period? A)

Foxburg Company Has the Following Information -
What Was the Direct Labor for the Period?
A)