Answer:
The correct answer is B= $61,500
Explanation:
Giving the following information:
Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost.
Any under or overapplied overhead is closed out to Cost of Goods Sold at the end of the calendar year.
During March:
Raw materials purchased= $27,00
Raw materials used in production= $28,000
Direct labor hours work= 2,500
Direct labor cost incurred= $20,000
Indirect labor cost incurred= $5,500
Manufacturing overhead costs incurred= $17,000
Raw material inventory, ending= $7,500
Work in process inventory, beginning= $10,500
Work in process inventory, ending= $14,000 (contains $5,000 of direct labor cost)
Cost of good manufactured= beginning work in process + direct material used + direct labor + manufacturing overhead - ending work in process
Cost of good manufactured= 10500 + 28000 + 20000 + 17000 - 14000= $61,500
