Reference: 03-10
Summit Company Has Provided the Following Inventory Balances

question 42

Multiple Choice

Reference: 03-10
Summit Company has provided the following inventory balances and manufacturing cost data for the month of
January: $$\begin{array}{l}\begin{array} { | c | l | l | } \hline \text { Inventories: } & \text { January 1 } & \text { January } 31 \\\hline \text { Direct materials } & \$ 30,000 & \$ 40,000 \\\hline \text { Work in process } & \$ 15,000 & \$ 20,000 \\\hline \text { Finished goods } & \$ 65,000 & \$ 50,000 \\\hline\end{array}\\\\\begin{array} { | l | l | } \hline & \text { Month of January } \\\hline \text { Cost of goods manufactured } & \$ 515,000 \\\hline \text { Manufacturing overhead applied } & \$ 150,000 \\\hline \text { Direct materials used } & \$ 190,000 \\\hline \text { Actual manufacturing overhead } & \$ 144,000 \\\hline\end{array}\end{array}$$ Under Summit's job-order costing system, any overapplied or underapplied overhead is closed to the Cost of
Goods Sold account at the end of the calendar year .
-How much direct labour cost was incurred during January?

• A)$170,000.
• B)$186,000.
• C)$180,000.
• D)$175,000.

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Definitions:

Psychological Disorders

A broad term encompassing various mental health conditions characterized by significant disturbances in an individual's thoughts, feelings, or behaviors.

Antipsychotic Drugs

Medications used to manage psychosis, including hallucinations, delusions, and disorders like schizophrenia.

Lobotomies

Surgical operations on the brain, historically performed to treat mental illness by severing connections in the brain's prefrontal cortex but now widely considered inhumane and obsolete.

Medical Community

A network of professionals, including doctors, nurses, and researchers, involved in health care and medical research.