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Question
During last period, a company's direct labor cost was double the cost of its direct material used. In addition, factory overhead was $5,000 underapplied. Use the following incomplete accounts to determine the cost of direct labor:
| Goods in Process Inventory | Finished Goods Inventory | |||||
| Beg. Bal. 60,000 | Beg. Bal. 76,000 | |||||
| D.M. ? | ? | 93,000 | ||||
| D.L. ? | ||||||
| O.H. ? | F. G. ? | |||||
| End. Bal. 87,000 | End. Bal. 71,000 | |||||
| Factory Overhead | ||||||
| 75,000 | ||||||
A. $15,000
B. $88,000
C. $45,000
D. $70,000
E. $30,000
Answer
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