The Ending Inventory of Finished Goods Has a Total Cost

question 5

Multiple Choice

The ending inventory of finished goods has a total cost of $10,000 and consists of 500 units.If the overhead applied to these goods is $2,000,and the overhead rate is 50% of direct labor,how much direct materials cost was incurred in producing these units?

• A) $4,000
• B) $6,000
• C) $3,000
• D) $7,000
• E) $10,000

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