1 The following information relates to Appledoorn Manufactur

1. The following information relates to Appledoorn Manufacturing\'s cost of manufacturing report: Raw materials purchased Total manufacturing costs incurred Factory overnead Selling and administrative expense Cost of goods sold $ 5,860 32,000 14,200 8,600 32,700 Inventories consisted of the following Beginning Ending $ 2,080 2,600 1,840 S 1,820 Raw materials Work-in-process Finished goods 2,920 1,860 What was the cost of direct labour for the vear? a) $3,600 b) $11,940 c) $12,200 d) $26,400

Solution

1.

Raw material consumed = Beginning raw material + Purchase of raw material – Ending raw material

                                         = 1,820 + 5,860 – 2,080

                                         = $5,600

Direct labor = Total manufacturing cost – Raw material consumed

                    = 32,000 – 5,600

                    = $26,400

Answer: d