The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?
A) $3,750.
B) $2,000.
C) $4,000.
D) $6,000.
E) $9,000.

Question

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The Answer of The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?
A) $3,750.
B) $2,000.
C) $4,000.
D) $6,000.
E) $9,000.

The Ending Inventory of Finished Goods Has a Total Cost