Inventory Balances for Ray,Inc During March,purchases of Direct Materials Were $1,500

question 114

Multiple Choice

Inventory balances for Ray,Inc.,in March are as follows: $\begin{array}{lrr}&\text { March 1}&\text { March 31}\\\text { Raw materials } & \$ 1,125 & \$ 875 \\\text { Work in process } & 2,000 & 1,550 \\\text { Finished goods } & 4,500 & 3,750\end{array}$ During March,purchases of direct materials were $1,500.Direct labour and factory overhead costs were $2,500 and $3,500,respectively.
What were the conversion costs for March?

• A)$6,000
• B)$7,500
• C)$7,750
• D)$8,200

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Definitions:

Selling Agents

Individuals or companies that act on behalf of sellers to market and sell their products or services.

Intermediaries

Agents or businesses that act as a middleman in the distribution chain, moving products from producers to consumers.

Manufacturers' Agents

Independent sales agents who represent multiple manufacturers and their products without taking ownership of the goods.

Noncompetitive

Refers to a market situation where businesses face little to no competition, either due to monopolistic conditions or because they offer a unique product or service.