Bracken Co.incurred the following costs during 2010:
What was the amount of direct materials used and direct labor for the year?
A)A
B)B
C)C
D)D = $62,000 + $58,000 = $120,000;or $133,000 - $75,000 = $58,000 And $120,000 - $58,000 = $62,000

Question

Bracken Co.incurred the following costs during 2010: 
What was the amount of direct materials used and direct labor for the year? 
A)A 
B)B 
C)C 
D)D = $62,000 + $58,000 = $120,000;or $133,000 - $75,000 = $58,000 And $120,000 - $58,000 = $62,000

Quizplus · Accepted Answer

Direct materials used can be calculated by subtracting beginning inventory from purchases and adding ending inventory. In this case, it would be $75,000 - $62,000 + $133,000 = $146,000. Direct labor can be calculated by adding the total labor costs, which is $58,000. Choice C is the closest to this answer, as it shows $148,000 for direct materials and $58,000 for direct labor.

Bracken Co.incurred the Following Costs During 2010