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:

Public Policy

A governmental policy based on widely held societal values.

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Fundamental norms, rules, or doctrines that guide the practice of law and ensure fairness and justice in legal processes.

Stare Decisis

A legal doctrine that obligates courts to follow historical cases when making a ruling on a similar case.

Efficiency

The degree to which an entity effectively uses resources to achieve desired outcomes with minimal waste or effort.