The Milo Company's Records for May Contain the Following Information

question 14

Multiple Choice

The Milo Company's records for May contain the following information:
$\begin{array}{|l|r|}\hline \text { Actual direct labour hours } & 9,000 \text { hours } \\\hline \text { Actual direct labour cost } & \$ 47,000 \\\hline \text { Direct material purchased } & \$ 16,000 \\\hline \text { Direct material used } & \$ 14,000 \\\hline \text { Cost of goods sold } & \$ 100,000 \\\hline \text { Overapplied overhead } & \$ 5,000 \\\hline\end{array}$
Ending inventories:
$\begin{array}{|l|r|}\hline \text { Raw materials } & \$ 30,000 \\\hline \text { Work in process } & 50,000 \\\hline \text { Finished goods } & 70,000 \\\hline\end{array}$
The company uses a predetermined overhead rate of $\$ 5.00$ per direct labour hour to apply manufacturing overhead to jobs.
-What was the total cost added to Work in Process during May?

• A) $101,000.
• B) $106,000.
• C) $61,000.
• D) $111,000.

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Definitions:

Expansion Valve

Restricts the flow of the refrigerant in an A/C circuit, which lowers its pressure as it exits the valve.

High-Pressure

Refers to a condition or system operating at a pressure significantly above atmospheric pressure, often used in hydraulic and pneumatic applications.

Low-Pressure

Refers to a condition or an area where the pressure is lower than the surrounding atmosphere or in comparison to a specified reference.

Liquids Evaporate

The process by which liquid substances transform into gas, usually as a result of heating or being exposed to air.