Meyers Corporation had the following inventory balances at the beginning and end of November: During November,$39,000 in raw materials (all direct materials)were drawn from inventory and used in production.The company's predetermined overhead rate was $8 per direct labor-hour,and it paid its direct labor workers $10 per hour.A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account.The ending Work in Process inventory account contained $4,700 of direct materials cost.The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The amount of direct labor cost in the November 30 Work in Process inventory was:
A)$2,800
B)$3,300
C)$3,500
D)$6,300

Question

Meyers Corporation had the following inventory balances at the beginning and end of November:  During November,$39,000 in raw materials (all direct materials)were drawn from inventory and used in production.The company's predetermined overhead rate was $8 per direct labor-hour,and it paid its direct labor workers $10 per hour.A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account.The ending Work in Process inventory account contained $4,700 of direct materials cost.The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The amount of direct labor cost in the November 30 Work in Process inventory was:
A)$2,800 
B)$3,300 
C)$3,500 
D)$6,300

Quizplus · Accepted Answer

Ending work in process inventory = Direct materials + Direct labor + Manufacturing overhead applied to work in process
$11,000 = $4,700 + $10X + $8X
$18X = $11,000 - $4,700 = $6,300
X = 350
Direct labor cost = $10 × 350 = $3,500

Meyers Corporation Had the Following Inventory Balances at the Beginning