Rios Corporation Reports Costs for the Year as Follows How Much Is the Total Product Costs for the Year

question 26

Multiple Choice

Rios Corporation reports costs for the year as follows: $\begin{array} { | l | r | } \hline \text { Direct Materials Used } & \$ 780,000 \\\hline \text { Wages to Line Workers } & 245,000 \\\hline \text { Office Rent } & 33,000 \\\hline \text { Indirect Materials Used } & 800,000 \\\hline\end{array}$ How much is the total product costs for the year?

• A) $800,000
• B) $1,825,000
• C) $1,858,000
• D) $1,025,000

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Definitions:

Indirect Expenses

Costs that are not directly attributable to the production of goods or services, such as utilities, rent, and administrative expenses.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Suppliers

Entities that provide goods or services to another entity, typically for resale or business use.

Firm's Potential Capacity

The maximum output a company can produce in a given period under ideal conditions, without considering current operational constraints.