Use the Following Information for the Next 3 Questions

question 6

Multiple Choice

Use the following information for the next 3 questions.
Dem Mfg. has gathered the following data in preparing to record their direct labor payroll costs for the week:
-The actual direct labor costs were

• A) $144,300
• B) $148,000
• C) $160,000
• D) $151,700

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Definitions:

Manufacturing Equipment

The machinery and tools used in the manufacturing process to produce goods or products.

Conversion Cost

The combined costs of direct labor and manufacturing overhead involved in transforming materials into finished goods.

Prime Cost

The sum of direct materials and direct labor costs in the production of goods, excluding overhead expenses.

Inventoriable Cost

Direct costs associated with the production of goods, including materials and labor, that are capitalized as inventory on the balance sheet until sold.