Garrett Corporation Provided the Following Information for the Year What Was the Amount of Direct Materials Used in Production

question 71

Multiple Choice

Garrett Corporation provided the following information for the year: $\begin{array} { | l | r | } \hline\text { Beginning Balance - Work-in-Process Inventory } & \$ 27,000 \\\hline \text { Ending Balance - Work-in-Process Inventory } & 56,000 \\\hline \text { Beginning Balance - Direct Materials } & 83,000 \\\hline \text { Ending Balance - Direct Materials } & 60,000 \\\hline \text { Purchases - Direct Materials } & 360,000 \\\hline \text { Direct Labor } & 471,000 \\\hline \text { Indirect Labor } & 18,000 \\\hline \text { Depreciation on Factory Plant and Equipment } & 25,000 \\\hline \text { Plant Utilities and Insurance } & 271,000 \\\hline\end{array}$ What was the amount of direct materials used in production during the year?

• A) $66,000
• B) $360,000
• C) $383,000
• D) $831,000

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Definitions:

Managers

Individuals responsible for controlling or administering an organization or group of staff and are involved in the planning, directing, and coordination of activities.

Payroll

The process by which employers pay an employee for the work they have completed.

Employees' Needs

Refers to the various requirements, desires, or things that employees consider important or necessary in their work environment, including fair compensation, job security, and professional growth opportunities.

Initial Activities

The preliminary actions or efforts undertaken at the start of a project, program, or process.