Here are selected data for Campbell Company Cost of goods ma

Here are selected data for Campbell? Company: Cost of goods manufactured $ 320 comma 100 Work in process? inventory, beginning 109 comma 300 Work in process? inventory, ending 104 comma 300 Direct materials used 74 comma 000 Manufacturing overhead is allocated at 50?% of direct labor cost. What was the amount of direct labor? costs? A. $ 106 comma 083.33 B. $ 241 comma 100.00 C. $ 160 comma 733.33 D. $ 154 comma 366.67

Solution

Direct labor plus overhead = cost of goods manufactureid -(work in process beginning inventory plus materials less ending inventory) = 320100 - (109300+74000-104300) = 241100

Overhead = 50% of direct labor, thus Direct labor plus 0.5 direct labor = 241100

Direct labor = 241100/1.5 = 160733.33

Direct labor cost = 160733.33