Assuming That the Direct Materials Used Is $1,400,000, Compute the Total

question 84

Multiple Choice

Assuming that the direct materials used is $1,400,000, compute the total manufacturing costs using the following information. $\begin{array}{lll}\text { Raw materials inventory, January } 1 & \$ 20,000 \\\text { Raw materials inventory, December } 31 & 40,000 \\\text { Work in process, January } 1 & 18,000 \\\text { Work in process, December } 31 & 12,000 \\\text { Finished goods, January 1 } & 40,000 \\\text { Finished goods, December } 31 & 32,000\\\text { Raw materials purchases } & 1,400,000 \\\text { Direct labor } & 560,000 \\\text { Factory utilities } & 150,000 \\\text { Indirect labor } & 50,000 \\\text { Factory depreciation } & 400,000 \\\text { Operating expenses } & 420,000\end{array}$

• A)$2,560,000.
• B)$2,554,000.
• C)$2,360,000.
• D)$2,980,000.

---

Definitions:

Teen Years

The period in human development that occurs between childhood and adulthood, typically between ages 13 and 19.

Twenties

A term often used to describe the decade between 20 and 29 years of age, or the 1920s era known for its unique cultural and social dynamism.

Justification of Effort

The tendency to attribute a greater value to an outcome they had to put effort into achieving.

Liking

A feeling of affection or fondness towards someone or something.