Rayfield Company's management accountant collected the following inventory and transaction data for the month: Inventories Ending Beginning
Direct materials $220 $190
Work in process 160 140
Finished goods 190 220
The cost of goods available for sale was $1,370. Total manufacturing costs assigned to work in process during the month was $1,170. Manufacturing overhead was $334; and direct materials used were $386.
Direct labour costs incurred during the month were:

Question

Quizplus · Accepted Answer

Direct labor costs can be calculated using the formula: Total manufacturing costs = Direct materials used + Direct labor + Manufacturing overhead. Plugging in the values: $1,170 = $386 + Direct labor + $334. Solving for Direct labor gives $450.

Rayfield Company's Management Accountant Collected the Following Inventory and Transaction