Barnes CoIncurred the Following Costs During July What Was the Amount of Direct Materials Used and Direct

question 27

Multiple Choice

Barnes Co.incurred the following costs during July: $\begin{array}{ll}\text { Conversion costs } & \$ 133,000 \\\text { Prime costs } & \$ 125,000 \\\text { Manufacturing overhead } & \$ 75,000\end{array}$ What was the amount of direct materials used and direct labor for July? $\begin{array}{lll}&\text { Direct materials } & \text { Direct labor } \\\text { A) } & \$ 43,000 & \$ 47,000 \\\text { B) } & \$ 47,000 & \$ 43,000 \\\text { C) } & \$ 58,000 & \$ 45,000 \\\text { D) } & \$ 67,000 & \$ 58,000\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Compounded Monthly

Interest calculation strategy where interest is added to the principal sum every month, allowing the investment to grow at a faster pace.

Amortized

The process of gradually paying off debt through a series of fixed payments that include both interest and a portion of the principal.

Compounded Monthly

Refers to the process where interest is calculated and added to the principal sum every month, resulting in interest earning interest.

Amortized

The process of gradually reducing a debt through periodic payments of both principal and interest over a set period of time.