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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