The amount of direct labor cost in the November 30 Work in Process inventory was:
A)$2,800
B)$3,300
C)$3,500
D)$6,300

Question

Quizplus · Accepted Answer

The November 30 Work in Process inventory includes 300 units with a direct materials cost of $11,400 and a conversion cost of $10,500. Therefore, the direct labor cost is $10,500 - $1,400 (overhead cost) = $9,100. Dividing $9,100 by 300 units gives a per-unit direct labor cost of $30.33. Multiplying this by the 115 units still in process gives a total direct labor cost of ($30.33/unit x 115 units) = $3,486.95, rounded to $3,500.

The Amount of Direct Labor Cost in the November 30