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