D&I Supplies, Inc selected cost data for the year are shown below
Work-in-Process Inventory, Jan. 1 $5,920
Direct Materials Used 101,000
Work-in-Process Inventory, Dec. 31 2,860
Cost of Goods Manufactured 193,100
Assuming manufacturing overhead costs of $27,800, what is the amount of direct labor incurred by D&I Supplies, Inc during the year?
A) $64,300
B) $190,040
C) $61,240
D) $128,800
C .C) Total Manufacturing Cost = Ending Work-in-Process Inventory + Cost of Goods Manufactured - Beginning Work-in-Process Inventory = $2,860 + $193,100 - $5,920 = $190,040
Direct labor costs = Total Manufacturing Cost - Manufacturing overhead costs - Direct Materials Used = $190,040 - $27,800 - $101,000 = $61,240
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