Use the Information Above to Answer the Following Question

question 15

Multiple Choice

Use the information above to answer the following question.If the straight-line method of amortization is used,how much total interest expense would be recorded in 2013?

• A)$1,840
• B)$840
• C)$1,000
• D)$864

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Definitions:

Raw Materials

are the basic, unprocessed inputs used in the manufacture of goods and products.

Indirect Materials

These are materials used in the production process that are not directly traceable to the finished product.

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods, considered a variable cost in manufacturing.