The Following Data Are for Potras Company -What Is the Cost of Raw Materials Used in Production

question 75

Multiple Choice

The following data are for Potras Company:
$\begin{array}{|l|r|r|}\hline & \text { Beginning } & \text { Ending } \\\hline \text { Finished goods inventory } & \$ 30,000 & \$ 40,000 \\\hline \text { Work-in-process inventory } & 20,000 & 13,000 \\\hline \text { Raw materials inventory } & 21,000 & 26,000 \\\hline \text { Purchases of raw materials } & 71,000 \\\hline \text { Factory depreciation } & 5,000 \\\hline \text { Other factory costs } & 10,000 \\\hline \text { Direct labour } & 27,000 \\\hline \text { Indirect labour } & 6,000 \\\hline \text { Selling expense } & 12,000 \\\hline \begin{array}{l}\text { Over- or underapplied } \\\text { overhead }\end{array} & -0 \\\hline\end{array}$


-What is the cost of raw materials used in production?

• A) $26,000.
• B) $71,000.
• C) $76,000.
• D) $66,000.

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Definitions:

Zinc

A metallic element with the atomic number 30, known for its resistance to corrosion and its importance in biology and industry.

Electron Configuration

The placement of electrons across the atomic or molecular orbitals in atoms or molecules.

Helium

A light, non-reactive gas used in balloons, as a cooling agent for nuclear reactors, and in inhaling mixtures to correct voice pitch.

Carbon Dioxide

An odorless, colorless gas that comes from the combustion of carbon and organics, plus through respiration, and is captured by plants in their photosynthesis process.