Using the Following Information Compute the Cost of Direct Materials

question 153

Multiple Choice

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

• A) $1740000.
• B) $1830000.
• C) $1800000.
• D) $1770000.

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Definitions:

Military Leader

An individual who commands and leads armed forces or groups within them, often possessing qualities such as courage, strategic planning, and decision-making skills.

Roosevelt Corollary

1904 announcement by President Theodore Roosevelt, essentially a corollary to the Monroe Doctrine, that the United States could intervene militarily to prevent interference from European powers in the Western Hemisphere.

International Police Power

The assertion of a nation's authority beyond its borders, often to protect its own interests or to maintain international peace and security.

Western Hemisphere

The half of the Earth that lies west of the Prime Meridian (which crosses Greenwich, London) and east of the antimeridian, encompassing the Americas.