The Information Below Has Been Taken from the Cost Records

question 28

Multiple Choice

The information below has been taken from the cost records of Tercel Company for the past year:
$\begin{array} {| l | r | } \hline \begin{array} { l } \text { Raw materials used in production (all } \\\text { direct) }\end{array} & \$ 326,000 \\\hline \begin{array} { l } \text { Total manufacturing costs charged to jobs } \\\text { during the year (includes raw materials, } \\\text { direct labour, and manufacturing overhead } \\\text { applied at the rate of } 60 \% \text { of direct labour } \\\text { cost) }\end{array} & \$ 686,000 \\\hline \begin{array} { l } \text { Cost of goods available for sales } \\\end{array} & \$ 826,000 \\\hline \begin{array} { l } \text { Selling and administrative expenses }\end{array} &\$25,000\\\hline\end{array}$
$\begin{array}{|l|r|r|}\hline & \text { Inventories } & \\\hline & \text { Beginning } & \text { Ending } \\\hline \text { Raw materials (all direct) } & \$ 75,000 & \$ 85,000 \\\hline \text { Work in process } & 80,000 & 30,000 \\\hline \text { Finished goods } & 90,000 & 110,000 \\\hline\end{array}$

-What amount of direct labour cost was charged to production during the year?

• A) $135,000.
• B) $225,000.
• C) $360,000.
• D) $216,000.

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Definitions:

Basic Informatics Knowledge

Fundamental understanding of the processing, management, and analysis of information, particularly in healthcare settings.

Cognitive Science

An interdisciplinary field of study concerned with the mind and intelligence, encompassing aspects of psychology, linguistics, artificial intelligence, philosophy, and neuroscience.

Disease Tracking

The monitoring and recording of the spread and trends of diseases to inform public health decisions.

Administrative Efficiencies

Practices or processes within an organization that enhance productivity and reduce costs, often through the effective management of resources.