Reference no: EM131676894

Question - The following data are for Sholpan Company for Year 1:

Work-in-process inventory, beginning balance $107,000

Direct materials inventory, ending balance 50,000

Actual manufacturing overhead costs 209,000

Work-in-process inventory, ending balance 115,000

Direct materials inventory, beginning balance 65,000

Finished goods inventory, beginning balance 100,000

Direct materials purchased 150,000

Finished goods inventory, ending balance 120,000

Labor rate variance 7,000

Unfavorable Labor efficiency variance 15,000

Favorable Materials price variance 24,000

Favorable Materials quantity variance 21,000

Unfavorable Applied manufacturing overhead 239,000

COST OF GOODS SOLD for Year 1, after making all necessary adjustments, is $705,000. [Note: Assume that Sholpan chooses the easiest method for the end-of-year closing of the variances and the over or under applied overhead.] What is the amount of direct labor cost for Year 1?

$400,000

$370,000

$351,000

$355,000

$375,000

$389,000

$385,000

$340,000