Biology Forums - Study Force

Tyare Corporation had the following inventory balances at the beginning and end of May:

	May 1	May 30
Raw materials	$29,000	$37,000
Finished Goods	$78,500	$73,000
Work in Process	$17,000	$17,039

During May, $62,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 370 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,400 of direct materials cost. The Corporation incurred $43,050 of actual manufacturing overhead cost during the month and applied $41,700 in manufacturing overhead cost.

The amount of direct labor cost in the May 30 Work in Process inventory was:

▸ $4,284

▸ $5,355

▸ $4,985

▸ $9,639

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