Before the Application of Overhead Costs James & Fraser Ltd $$\begin{array} { c c c } & \text { Direct materials } & \text { Direct labour } \\\text { Charged to production } & \$ 60000 & \$ 80000\end{array}$$

Multiple Choice

Before the application of overhead costs James & Fraser Ltd has the following costs traced to production:
$$\begin{array} { c c c } & \text { Direct materials } & \text { Direct labour } \\\text { Charged to production } & \$ 60000 & \$ 80000\end{array}$$ Assuming that overhead is applied at the rate of 60% of direct labour cost what is the amount of inventory finished for the period? Assume no work in process.

A) $80 000
B) $140 000
C) $176 000
D) $188 000