Using the Following Information, Compute the Cost of Direct Materials

question 22

Multiple Choice

Using the following information, compute the cost of direct materials used. $\begin{array}{lll}\text { Raw materials inventory, January 1 } & \$ 30,000 \\\text { Raw materials inventory, December 31 } & 60,000 \\\text { Work in process, January 1 } & 27,000 \\\text { Work in process, December 31 } & 18,000 \\\text { Finished goods, January 1 } & 60,000 \\\text { Finished goods, December 31 } & 48,000\\\text { Raw materials purchases } & 1,500,000 \\\text { Direct labor } & 690,000 \\\text { Factory utilities } & 225,000 \\\text { Indirect labor } & 75,000 \\\text { Factory depreciation } & 500,000 \\\text { Operating expenses } & 630,000\end{array}$

• A)$1,590,000.
• B)$1,530,000.
• C)$1,500,000.
• D)$1,470,000.

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Definitions:

Project Participants

Individuals or groups who have a stake in the success and outcomes of a project.

Project Story

A narrative that outlines the journey of a project, including its challenges, milestones, solutions, and achievements.

Explanation

Providing information or clarification about a topic or concept to aid in understanding.

Team Members

Individuals who are part of a group working together towards a common goal or project.