Newton Company Recently Had a Fire in Its Accounting Office,destroying

question 99

Multiple Choice

Newton Company recently had a fire in its accounting office,destroying most of its records.Only the following information could be salvaged for the year: $\begin{array}{lr}\text { Direct labour } & \$ 400,000 \\\text { Factory overhead } & 200,000 \\\text { Cost of goods sold } & 800,000 \\\text { Work in process, January 1 } & 80,000 \\\text { Finished goods, January 1 } & 160,000 \\\text { Work in process, December 31 } & 100,000 \\\text { Finished goods, December 31 } & 120,000\end{array}$
What is the cost of direct materials used in production during the year?

• A)$140,000
• B)$180,000
• C)$200,000
• D)$260,000

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Definitions:

Route Sheet

A document detailing the operations sequence, tools, and machinery needed for manufacturing a part, serving as a guide for production planning and control.

Model Life Cycles

The series of stages that a model, such as a product, service, or project model, goes through from its initiation and development to its decline and eventual discontinuation.

Time-Based Competition

Competition based on time, rapidly developing products and moving them to market.

Design for Manufacturability

An engineering practice that focuses on designing products in such a way that they are easy, cost-effective, and efficient to manufacture.