Gulick Company Developed the Following Data for the Current Year

question 108

Multiple Choice

Gulick Company developed the following data for the current year: $\begin{array}{lr}\text { Beginning mork in process inventory } & \$ 240,000 \\\text { Direct materials used } & 144,000 \\\text { Actual overhead } & 288,000 \\\text { Overhead applied } & 216,000 \\\text { Cost of goods manufactured } & 264,000 \\ \text { Total manufacturing costs } & 720,000\end{array}$ Gulick Company's direct labor cost for the year is

• A)$72,000.
• B)$360,000.
• C)$216,000.
• D)$288,000.

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Definitions:

Cost of Goods Sold

An accounting term that refers to the direct expenses related to the production of goods sold by a business, including materials and labor.

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period.

Net Income

The conclusive financial gain of a company post all deductions for expenses and taxes from the revenue.

Understated

Described or estimated below the actual size, quantity, or importance.