Using the Following Information, Compute the Cost of Direct Materials

question 7

Multiple Choice

Using the following information, compute the cost of direct materials used. $$\begin{array} { l r } \text { Raw materials inventory, January 1 } & \$ 30,000 \\\text { Raw materials inventory, December 31 } & 60,000 \\\text { Work in process, January 1 } & 27,000 \\\text { Work in process, December 31 } & 18,000 \\\text { Finished goods, January 1 } & 60,000 \\\text { Finished goods, December 31 } & 48,000 \\\text { Raw materials purchases } & 1,800,000 \\\text { Direct labor } & 890,000 \\\text { Factory utilities } & 225,000 \\\text { Indirect labor } & 75,000 \\\text { Factory depreciation } & 500,000 \\\text { Operating expenses } & 630,000\end{array}$$

• A) $1,740,000.
• B) $1,830,000.
• C) $1,800,000.
• D) $1,770,000.

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