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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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Answer:

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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