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1 November, 00:34

Woodcarving Co. incurred the following costs during May: Conversion costs $ 476,500 Prime costs 403,750 Manufacturing overhead 320,500 What was the amount of direct materials and direct labor used in May? Direct materials Direct labor A. $ 111,000 $ 292,750 B. $ 116,000 $ 209,500 C. $ 247,750 $ 156,000 D. $ 81,000 $ 86,000

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  1. 1 November, 00:53
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    The correct answer is C

    Explanation:

    With the following information, we need to calculate the direct materials and direct labor:

    Woodcarving Co. incurred the following costs during May:

    Conversion costs $ 476,500

    Prime costs 403,750

    Manufacturing overhead 320,500

    We know that:

    Conversion cost = direct labor + Manufacturing overhead

    476500 = direct labor + 320500

    direct labor = $156000

    Prime costs = direct materials + direct labor

    403750 = direct materials + 156000

    direct labor = $247750
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