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:

Winter

The coldest season of the year, characterized by shorter days, longer nights, and typically, snowfall or colder temperatures, depending on the region.

Spring

One of the four temperate seasons, typically associated with rebirth, renewal, and growth.

Fall

A decrease in position or status; alternatively, the act of falling or a season between summer and winter characterized by cooler temperatures and changing foliage.

Deviant Behavior

Deviant behavior refers to actions that violate the norms or expectations of a society or group.