Assuming the Cost of Direct Materials Used Is $1800000 Compute

question 68

Multiple Choice

Assuming the cost of direct materials used is $1800000 compute the total manufacturing costs using the information below. $\begin{array}{lr}\text { Raw materials inventory, January 1 } &\$ 30,000 \\\text { Raw materials inventory, December 31 } & 60,000 \\\text { Work in process, January 1 } & 27,000 \\\text { Work in process, December 31 } & 18,000 \\\text { Finished goods, January 1 } & 60,000 \\\text { Finished goods, December 31 } & 48,000 \\\text { Raw materials purchases } & 1,800,000 \\\text { Direct labor } & 890,000 \\\text { Factory utilities } & 225,000 \\\text { Indirect labor } & 75,000 \\\text { Factory depreciation } & 500,000 \\\text { Operating expenses } & 630,000\end{array}$

• A)$3490000.
• B)$3499000.
• C)$3190000.
• D)$4120000.

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Definitions:

American Grain Crops

Crops such as wheat, corn, barley, and oats that are primarily grown in the United States and are major components of the agricultural sector.

Price Supports

Government interventions to maintain the market price of a commodity or product at a certain minimum level to protect producers.

Environmental Pollution

The contamination of the natural environment by harmful substances or energies.

Marginal Land

Land that yields minimal profit from agricultural or another use, and its cultivation is often not considered worth the effort under normal circumstances.