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:

Visible Light

The portion of the electromagnetic spectrum that is visible to the human eye, ranging approximately from 380 to 750 nanometers in wavelength.

Ganglion Cells

Neurons located in the retina that relay visual information from photoreceptors to the brain via the optic nerve.

Bipolar Cells

A type of neuron found in the retina that serves as a relay between photoreceptors (rods and cones) and ganglion cells.

Rods

Photoreceptor cells in the retina of the eye that are highly sensitive to low levels of light, enabling night and peripheral vision.