Tyare Corporation had the following inventory balances at the beginning and end of May: May 1May 30Raw materials$28,500? $36,000? Finished Goods$78,000? $72,000? Work in Process$16,500? $16,962? During May, $61,500 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 360 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 $7350 of direct materials cost. The Corporation incurred $42,900 of actual manufacturing overhead cost during the month and applied $41,400 in manufacturing overhead
cost.The direct materials cost in the May 1 Work in Process inventory account totaled:
A. $11,100
B. $6780
C. $12,180
D. $5400
Answer: B
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