6) Here are selected data for Life Fitness Company, the company has a fiscal year end of 2014.
The company does not have operation on Jan 1, any year.
Cost of goods manufactured
$323,200
Work in process inventory, Jan 1, 2014
109,000
Work in process inventory, Jan1, 2015
104,000
Raw materials inventory, Jan 1, 2014
62,000
Raw purchased in Mar 1, 2014
15,000
Raw purchased in Jun 1, 2014
60,300
Raw materials inventory Dec 31, 2014
64,300
Manufacturing overhead is allocated at 60% of direct labor cost. What was the amount of direct
labor costs? Assume that the raw materials inventory consists of direct materials only.