The Ending Inventory of Finished Goods Has a Total Cost

question 25

Multiple Choice

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?

• A) $3,750.
• B) $2,000.
• C) $4,000.
• D) $6,000.
• E) $9,000.

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