Reference: 03-06
the Milo Company's Records for May Contained the Following

question 56

Multiple Choice

Reference: 03-06
The Milo Company's records for May contained the following information: $$\begin{array} { | l | l | l | } \hline \text { Actual direct labour-hours } & 9,000 & \text { hours } \\\hline \text { Actual direct labour cost } & \$ 47,000 & \\\hline \text { Direct material purchased } & 16,000 & \\\hline \text { Direct material used } & 14,000 & \\\hline \text { Cost of goods sold } & 100,000 & \\\hline \text { Overapplied overhead } & 5,000 & \\\hline \text { Ending inventories: } & & \\\hline \text { Raw materials } & 30,000 & \\\hline \text { Work in process } & 50,000 & \\\hline \text { Finished goods } & 70,000 & \\\hline\end{array}$$ The company uses a predetermined overhead rate of $5.00 per direct labour hour to apply manufacturing overhead to jobs.
-The cost of raw materials purchased during the year amounted to:

• A)$316,000.
• B)$360,000.
• C)$336,000.
• D)$411,000.