Reference: 03-01
Wayne Company Uses a Job-Order Costing System and Applies

Reference: 03-01
Wayne Company uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate based on direct labour-hours. The company had the following inventories at the beginning and end of March: $$\begin{array}{l}\begin{array} { | l | l | l | } \hline & \text { March 1 } & \text { March 31 } \\\hline \text { Direct Materials } & \$ 36,000 & \$ 30,000 \\\hline \text { Work in Process } & 18,000 & 12,000 \\\hline \text { Finished Goods } & 54,000 & 72,000 \\\hline\end{array}\\\text { The following additional data pertain to operations during March: }\\\begin{array} { | l | l | l | } \hline \text { Direct materials purchased } & \$ 84,000 & \\\hline \text { Direct labour cost } & \$ 60,000 & \\\hline \text { Direct labour rate } & \$ 7.50 & \text { per direct labour-hour } \\\hline \text { Overhead rate } & \$ 10.00 & \text { per direct labour-hour } \\\hline\end{array}\end{array}$$
-The Cost of Goods Manufactured for March was:

A) $218,000.
B) $230,000.
C) $236,000.
D) $212,000.