Using the Following Information, Compute the Direct Materials Used A)$1,760,000

question 135

Multiple Choice

Using the following information, compute the direct materials used. $\begin{array}{lr}\text { Raw materials inventory, January 1 } & 20,000 \\\text { Raw materials inventory, December } 31 & 40,000 \\\text { Work in process, January 1 } & 18,000 \\\text { Work in process, December } 31 & 12,000 \\\text { Finished goods, January 1 } & 40,000 \\\text { Finished goods, December } 31 & 32,000 \\\text { Raw materials purchases } & 1,700,000 \\\text { Direct labor } & 760,000 \\\text { Factory utilities } & 150,000 \\\text { Indirect labor } & 50,000 \\\text { Factory depreciation } & 400,000 \\\text { Operating expenses } & 420,000\end{array}$

• A)$1,760,000.
• B)$1,720,000.
• C)$1,700,000.
• D)$1,680,000.

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Definitions:

Land Improvements

Enhancements made to land, such as landscaping, driveways, fences, and sidewalks, that increase the property's value.

Subdivisions

In real estate, this refers to the act of dividing land into pieces that are easier to sell or otherwise develop.

Cash Discount

A reduction in the price paid for goods or services offered to customers as an incentive for early payment.

Annual Insurance

The total cost of insurance coverage for an entity or individual for a one-year period.