Dasilva Company Had Only One Job in Process on May

question 162

Multiple Choice

Dasilva Company had only one job in process on May 1. The job had been charged with $1,400 of direct materials, $6,192 of direct labor, and $5,712 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $11.90 per direct labor-hour. During May, the following activity was recorded: Work in process inventory on May 30 contains $4,773 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.
-The cost of goods manufactured for May was:

• A) $98,920
• B) $92,688
• C) $120,800
• D) $97,310

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Definitions:

Monopolistically Competitive

Characterizing a market environment where several sellers offer differentiated products, resulting in non-price competitive strategies.

Price-Taker

An economic agent (e.g., a firm or consumer) that has no control over the market price and must accept prices as given.

Economic Profit

The surplus achieved when total revenue exceeds the opportunity costs of all resources used in production.

Monopolistically Competitive

A market structure characterized by many firms offering products that are similar but not identical, leading to competition based on factors other than price.