Furniture Co. incurred the following costs during 2013: What was the amount of direct materials and direct labor used for the year?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Furniture Co. incurred the following costs during 2013:  What was the amount of direct materials and direct labor used for the year? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Direct materials and direct labor can be calculated by adding up the respective costs listed in the table. Direct materials = $55,000 + $35,000 + $20,000 = $110,000. Direct labor = $50,000 + $25,000 + $30,000 = $105,000. Option D is the only one that includes both of these amounts.