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.

---

Definitions:

Necessary

In legal and ethical contexts, necessary refers to something that is required or indispensable to achieve a specific outcome or obligation.

Disaffirm

The legal act of renouncing or rejecting a contract or agreement, especially by a party who was not legally competent to enter it at the time of agreement.

Reasonable Value

The fair or market value of goods or services, as determined by considering the costs, demand, and any other factor relevant to an exchange.

Necessary

In legal and philosophical terms, necessary refers to something required, indispensable, or absolutely needed to achieve a certain outcome or fulfill a condition.