Richards Company The following information has been taken from the cost records of Richards Company for the past year: Raw material used in production $326 Total manufacturing costs charged to production during 686 the year (includes direct material, direct labor, and overhead equal to 60% of direct labor cost) Cost of goods available for sale 826 Selling and Administrative expenses 25
Inventories Begining Ending

Raw material 75 $85

Work in process 80 30
Finished goods 90 110
Refer to Richards Company.Direct labor cost charged to production during the year was

Question

Richards Company
The following information has been taken from the cost records of Richards Company for the past year:
Raw material used in production                                                $326
Total manufacturing costs charged to production during            686
the year (includes direct material, direct labor, and
overhead equal to 60% of direct labor cost)
Cost of goods available for sale                                                  826
Selling and Administrative expenses                                           25

Inventories	Begining	Ending
Raw material	75	$85
Work in process	80	30
Finished goods	90	110

Refer to Richards Company.Direct labor cost charged to production during the year was

Quizplus · Accepted Answer

The direct labor cost charged to production during the year can be calculated by adding the total direct labor cost for the year and the ending balance of the work in process inventory, and then subtracting the beginning balance of the work in process inventory. Thus, direct labor cost charged to production = beginning work in process inventory + direct labor cost incurred during the year - ending work in process inventory
= $40 + $215 - $30 = $225. Therefore, the correct answer is option C.

Richards Company The Following Information Has Been Taken from the Cost Records