If the Required Direct Materials Purchases Are 24000 Pounds the Direct

question 170

Multiple Choice

If the required direct materials purchases are 24000 pounds the direct materials required for production is three times the direct materials purchases and the beginning direct materials are three and a half times the direct materials purchases what are the desired ending direct materials in pounds?

• A) 60000
• B) 12000
• C) 36000
• D) 24000

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Definitions:

First-In, First-Out

An inventory valuation method where the cost of the earliest goods purchased are the first to be recognized in determining cost of goods sold.

Last-In, First-Out

An inventory valuation method where the costs of the most recently acquired items are the first to be expensed.

LIFO

An inventory cost methodology assuming the most recently added items to the inventory are sold first, short for "Last-In, First-Out."

FIFO

"First In, First Out," an inventory valuation method where goods first bought are the first to be sold.