Argento Supplies,Inc.selected cost data for the year are shown below:

Assuming manufacturing overhead costs of $27,800,what is the amount of direct labor incurred by Argento Supplies,Inc.during the year?

Question

Argento Supplies,Inc.selected cost data for the year are shown below:

Assuming manufacturing overhead costs of $27,800,what is the amount of direct labor incurred by Argento Supplies,Inc.during the year?

Quizplus · Accepted Answer

Total Manufacturing Cost = Ending Work-in-Process Inventory + Cost of Goods Manufactured - Beginning Work-in-Process Inventory = $2860 + $193,100 - $5920 = $190,040
Direct labor costs = Total Manufacturing Cost - Manufacturing overhead costs - Direct Materials Used = $190,040 - $27,800 - $101,000 = $61,240