Fireox Company's selected cost data for 2017 are shown below:
$$\begin{array} { | l | l | }
\hline \text { Work in process inventory, } 1 \text { Jan } 2017 & \$ 5880 \
\hline \text { Direct materials used } & 105,000 \
\hline \text { Work in process inventory, } 31 \text { Dec } 2017 & 2780 \
\hline \text { Cost of goods manufactured } & 193,300 \
\hline
\end{array}$$
Assuming manufacturing overhead costs of $27,810,what is the amount of direct labour incurred by Fireox Company in 2017?
A) $57,390
B) $190,200
C) $60,490
D) 883$132,810

Question

Fireox Company's selected cost data for 2017 are shown below:
$$\begin{array} { | l | l | } 
\hline \text { Work in process inventory, } 1 \text { Jan } 2017 & \$ 5880 \
\hline \text { Direct materials used } & 105,000 \
\hline \text { Work in process inventory, } 31 \text { Dec } 2017 & 2780 \
\hline \text { Cost of goods manufactured } & 193,300 \
\hline
\end{array}$$
Assuming manufacturing overhead costs of $27,810,what is the amount of direct labour incurred by Fireox Company in 2017?
A) $57,390
B) $190,200
C) $60,490
D) 883$132,810

Quizplus · Accepted Answer

Direct labour incurred = Cost of goods manufactured - Direct materials used - Manufacturing overhead costs - Change in work in process inventory= 193,300 - 105,000 - 27,810 - (2780 - 5880)= 57,390

Fireox Company's Selected Cost Data for 2017 Are Shown Below