Information from the Records of the Tyler Enterprises for March

question 205

Multiple Choice

Information from the records of the Tyler Enterprises for March is as follows:
$$\begin{array} { l r } \text { Sales } & \$ 41,000 \\\text { Direct labour } & 10,000 \\\text { Selling and administrative expenses } & 7,000 \\\text { Direct materials purchases } & 6,000 \\\text { Factory averhead } & 13,500\end{array}$$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Inventories }$
$\begin{array}{lcc}& \underline{\text { March 1 }}&\underline{\text { March 31}}\\ \text { Direct materials } & \$ 1,200 & \$ 1,400 \\\text { Work in process } & 2,500 & 2,800 \\ \text { Finished goods } & 2,300 & 1,900 \\\end{array}$
-Refer to the figure.What was the cost of materials used in production?

• A)$5,800
• B)$6,000
• C)$6,200
• D)$19,500

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Definitions:

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product.

Market Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that all consumers in a market are willing to purchase at each price level.

Price Elasticity

The degree to which the demand or supply of a product or service changes in response to a change in price, indicating the sensitivity of consumers or producers to price variations.

Total Expenditure

The aggregate amount spent by consumers on a particular good or service over a specified time period.