Finished goods inventory is $182,000. If overhead applied to these goods is $75,000, and the overhead rate is 120% of direct labor, how much direct materials cost was incurred in producing the inventory? (Round your intermediate calculations and final answer to nearest whole dollar.)

Direct Material cost To the nearest whole dollar becomes $45,000

Explanation:

Given that Total cost in the finished goods inventory = $182,000

Total cost = Direct Material cost  + Direct Labor cost + Overhead rate cost

But Overhead rate cost = 120% of labor cost

Since Over head cost = $75,000

Direct labor cost = $75,000/ 120%=$62,500

Total cost = Direct Material cost  + Direct Labor cost + Overhead rate cost

$182,000 = Direct Material cost+ $62,500+ $75,000

Direct Material cost = $182,000 - ( 62,500+75,000)

Direct Material cost = $182,000 -$137,500

Direct Material cost = $44,500

To the nearest whole dollar becomes $45,000

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police