Under Lamar Company's Job Costing System, Manufacturing Overhead Is Applied

Under Lamar Company's job costing system, manufacturing overhead is applied to Work-in-Process Inventory using a predetermined overhead rate. During June, Lamar's transactions included the following:
$\begin{array}{lrr} \text { Direct materials issued to production } &\$90,000\\ \text { Indirect materials issued to production } &8,000\\ \text { Manufacturing overhead cost incurred } &125,000\\ \text { Manufacturing overhead cost applied } &113,000\\ \text { Direct labor cost incurred } &107,000\\\end{array}$


Lamar Company had no beginning or ending inventories. What was the cost of goods manufactured for June? (CMA adapted)

A) $302,000.
B) $310,000.
C) $322,000.
D) $330,000.

Correct Answer:

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