Reference no: EM132628961

Tyare Corporation had the following inventory balances at the beginning and end of May:

                                             May 1               May 30

Raw materials                      $31,000     $41,000

Finished Goods                  $80,500        $77,000

Work in Process                   $19,000     $17,347

During May, $64,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 410 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,600 of direct materials cost. The Corporation incurred $43,650 of actual manufacturing overhead cost during the month and applied $42,900 in manufacturing overhead cost.

Problem 1: The amount of direct labor cost in the May 30 Work in Process inventory was:

Multiple Choice

Option 1: $5,415

Option 2: $4,332

Option 3: $9,747

Option 4: $5,005