The Following Information Is Available for the First Month of Operations

question 101

Multiple Choice

The following information is available for the first month of operations for Bluemoon, Inc.: $\begin{array}{|l|r|}\hline \text { Sales } & \$ 850,000 \\\hline \text { Gross profit } & 330,000 \\\hline \text { Indirect labor } & 35,000 \\\hline \text { Indirect materials } & 14,000 \\\hline \text { Other factory overhead } & 9,000 \\\hline \text { Materials purchased } & 360,000 \\\hline \text { Total manufacturing costs } & 670,000 \\\hline \text { Materials inventory, end of period } & 20,000 \\\hline\end{array}$ ? Based on the information provided for Bluemoon, Inc., calculate direct materials cost used in production.

• A) $326,000
• B) $340,000
• C) $360,000
• D) $346,000

---

Definitions:

Present Value

A calculation of today's value of money to be received in the future or ongoing cash flows, based on a given rate of return.

Rent Payment

Monetary compensation paid by a lessee to a lessor for the use of a particular property, piece of equipment, or facility.

Land Supplied

Land supplied indicates the quantity of land offered for use or development, affected by factors like pricing, zoning regulations, and market demand.