Assuming That the Direct Materials Used Are $1,700,000, Compute the Total

question 124

Multiple Choice

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

• A)$3,060,000.
• B)$3,066,000.
• C)$2,860,000.
• D)$3,480,000.

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Definitions:

Disproportionately

Refers to an unequal or imbalanced distribution or representation in comparison with a standard or expected ratio.

Air Pollution

The presence of substances in the atmosphere that are harmful to the health of humans and other living beings or cause damage to the climate or to materials.

Greenhouse Gas Emissions

The release of gases into the Earth's atmosphere that trap heat, contributing to global warming and climate change.

Developing World

A term used to describe countries that are in the process of industrialization and have lower levels of income and living standards compared to developed countries.