Tyare Corporation Had the Following Inventory Balances at the Beginning

question 254

Multiple Choice

Tyare Corporation had the following inventory balances at the beginning and end of May:
During May, $58,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,050 of direct materials cost. The Corporation incurred $42,000 of actual manufacturing overhead cost during the month and applied $39,600 in manufacturing overhead cost.
-The amount of direct labor cost in the May 30 Work in Process inventory was:

• A) $4,200
• B) $5,250
• C) $4,950
• D) $9,450

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Definitions:

Computer Workstations

Advanced computing systems built for the purpose of executing scientific or technical applications with high efficiency.

Direct Method

A cash flow statement preparation approach that involves directly listing all major operating cash receipts and payments during the period.

Maintenance Costs

refer to expenses incurred to keep machinery, equipment, and facilities in working order, ensuring operational efficiency.

Labor Hours

A measure of the amount of work performed, calculated by multiplying the number of workers by the number of hours each works.