Dacosta Corporation Had Only One Job in Process on May

question 234

Multiple Choice

Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,100 of direct materials, $6,966 of direct labor, and $10,020 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $19.00 per direct labor-hour.During May, the following activity was recorded: Work in process inventory on May 30 contains $3,795 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.The cost of goods manufactured for May was:

• A) $97,170
• B) $110,660
• C) $106,210
• D) $108,281

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Definitions:

Midpoint Method

A technique for calculating the percentage change in a variable, which averages the initial and final values to compute elasticity.

Price Elasticity

A measure of how responsive the quantity demanded of a good is to a change in its price, indicating how shifts in price can affect consumer demand and consumption.

Midpoint Method

A technique used in economics for calculating the percentage change between two values by dividing the change by the average of the initial and final values.

Price Elasticity

An indicator of the degree to which demand for a product fluctuates in response to its price variations, showcasing the product's price sensitivity.