Question

The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: Raw Materials Work in Process Credit Credit Debit Beginning Balance Debit Beginning Balance 9,000 22,200 5,000 5,200 4,100 6,200 8,500 8,300 Finished Goods Manufacturing Overhead Credit Debit Credit Debit Beginning Balance 20,400 8,300 2,200 22,200 2,800 3,500 3,200 Cost of Goods Sold Debit Wages & Salaries Payable Credit 20,400 Beginning Balance Debit Credit 20,400 2,500 12,000
The direct labor cost was:
a. $20,400
b. $13.100

Answer 1

Answer:

$8,500

Explanation:

The computation of the direct labor cost is given below

The raw material issued should be  

= 6,200 + 2,800

= 9,000

The manufacturing overhead applied is 8,300

So, here the amount should be from both work in process and manufacturing overhead  

Therefore the remaining amount i.e. $8,500 should be the direct labor cost