Here are selected data for Whatchamacallit Company Cost of g

Here are selected data for Whatchamacallit Company: Cost of goods manufactured Work in process inventory, beginning Work in process inventory, ending Direct materials used Manufacturing overhead is allocated at 50% of direct labor cost. $320,300 $109,400 $104,100 $73,500 What was the amount of direct labor costs? (Round your answer to the nearest cent.) OA. $106,300.00 O B. $241,500.00 O C. $154,000.00 OD. $161,000.00

Solution

Answer is D.

Cost of Goods Manufactured = Work in Process Inventory, Beginning + Total Manufacturing Cost - Work in Process Inventory, Ending
$320,300 = $109,400 + Total Manufacturing Cost - $104,100
Total Manufacturing Cost = $315,000

Total Manufacturing Cost = Direct Materials + Direct Labor + Manufacturing Overhead
$315,000 = $73,500 + Direct Labor + 50% * Direct Labor
$241,500 = 150% * Direct Labor
Direct Labor = $161,000