Using the Following Information, Compute the Cost of Direct Materials

question 55

Multiple Choice

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

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

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Definitions:

Power

In statistics, power refers to the probability that a test will reject a false null hypothesis, essentially measuring the test's capability to detect an effect if there is one.

Body Mass Index

A numerical computation using height and weight to classify an individual's body weight status.

Type I Error

A statistical error that occurs when a null hypothesis is incorrectly rejected when it is actually true.

Retention Rate

The percentage of individuals or items that remain in a condition, process, or system over a given period compared to the number at the start.