Question

ZITZUZU 4. Beckett, Inc. reports the following cost information for March: Cost of Goods Manufactured $72,000 Manufacturing Overhead 18,800 Finished Goods Inventory, March 1 3,000 Finished Goods Inventory, March 31 2,000 Work-in-Process Inventory, March 1 9,600 Work-in-Process Inventory, March 31 1,300 Direct Materials Used 25,210 What is the amount of direct labor incurred by Beckett, Inc. in March? O A. $63,700 OB. $19,690 O c. $6,410 OD. $72,000

Answer 1

Answer-Direct Labor = B. $ 19,690. Explanations: Cost of Goods produced or manufactured = Direct Material Used +Direct Labor + Manufacturing Overhead + Work in Progress Inventory, March 1-Work in Progress Inventory, March 31 $72,000 = $ 25,210 + Direct Labor + $18,800 + 9,600 - 1300 $72,000 = $52,130 + Direct Labor Direct Labor = $ 72,000 - $52,130 Direct Labor = $ 19,690 $ $ The Answer is verified below for better understanding of Students. Statement of Cost of Goods manufactured For the Period Ended ......... Particulars Direct Material Used Direct Labor Prime Cost Add: Manufacturing Overhead Gross Works Costs Add: Work in Progress Inventory, March 1 Less: Work in Progress Inventory, March 31 Factory Cost Add: General and Administrative Expense Cost of Goods produced or manufactured Amount 25,210 19,690 44,900 18,800 63,700 9,600 1,300 72,000 $ 72,000 Requirement 2 Statement of Cost of Goods Sold For the Period Ended .................. Particulars Amount Cost of Goods Manufactured Add: Begnning finished Goods Inventory Cost of Goods Available for Sale Less: Ending Inventory of Finished Goods Cost of Goods Sold 72,000 3,000 75,000 2,000 73,000 $