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As any architect, Tasha is always drinking coffee. Unfortunately one morning she

ID: 2332828 • Letter: A

Question

As any architect, Tasha is always drinking coffee. Unfortunately one morning she spilt some coffee on some of the records of Zube Co. She asked you, Aga, her longtime accountant friend to help her find the missing numbers:

Direct materials used

$19376

Direct labour costs

?

Manufacturing overhead

?

Total manufacturing costs

$105869

Work in process, beginning

$18159

Work in process, ending

$33671

Cost of goods manufactured

?


In addition, you were also provided the following information:

Indirect materials and labour

$26981

Depreciation on administrative office

$4998

Property taxes for administrative office

$15414


What are the direct labour costs incurred and cost of goods manufactured?

Select one:

a. DL $39100, COGM $177075

b. DL $59512, COGM $90357

c. DL $39100, COGM $157699

d. DL $54039, COGM $51830

Direct materials used

$19376

Direct labour costs

?

Manufacturing overhead

?

Total manufacturing costs

$105869

Work in process, beginning

$18159

Work in process, ending

$33671

Cost of goods manufactured

?

Explanation / Answer

Total Manufacturing cost: 105869 less: Direct material cost 19376 Less: manufacturing Overheads 26981 (Indirect Material) Direct Labour cost 59512 Cost of Goods Manufactured: Total Manufacturing cost 105869 Add: Beginning WIP 18159 Less: Ending WIP 33671 Cost of Goods Manufactured: 90357 Answer is b. DL $ 59512. COGM $ 90357