Using the Following Information Compute the Cost of Direct Materials

question 147

Multiple Choice

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

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

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Definitions:

Unique Ways

Innovative or distinctive methods or approaches to doing something.

Availability Bias

A cognitive bias that influences people to overestimate the importance of information available to them, impacting decision-making.

Similarity To Other Situations

The degree to which a current scenario or issue replicates the aspects or conditions of a different situation previously encountered.

Confirmation Error

A cognitive bias involving the tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.