Kelita's Kar Kare Kompany Had the Following Cost and Inventory

question 30

Multiple Choice

Kelita's Kar Kare Kompany had the following cost and inventory data for the month:
Costs incurred for the month: $$\begin{array} { l r } \text { Direct labour } & \$ 6,900 \\\text { Indirect labour } & 1,500 \\\text { Direct materials purchased } & 4,500 \\\text { Factory utilities } & 2,200 \\\text { Factory amortization } & 3,000 \\\text { Factory supervision } & 1,200\end{array}$$
Inventories: $$\begin{array} { l l l } & \text { Ending } & \text { Beginning } \\\text { Direct materials } & \$ 1,500 & \$ 1,800 \\\text { Work in process } & 4,500 & 4,050 \\\text { Finished goods } & 6,000 & 5,250\end{array}$$
What were the direct materials available for the month?

• A) $4,500
• B) $6,000
• C) $6,300
• D) $7,800

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Definitions:

Real Wages

Wages that have been adjusted for inflation, reflecting the actual purchasing power of income earned by workers.

Industrially Advanced Nations

Countries with highly developed economies, significant industrial production, and advanced technological infrastructure.

Long-run Trend

The long-run trend refers to the general pattern or direction that an economic variable, such as GDP growth or the unemployment rate, follows over a prolonged period, smoothing out short-term fluctuations.

Real Wages

The purchasing power of wages, taking into account the effects of inflation or deflation, which reflects the actual goods and services that wages can buy.