Rios Corporation Reports Costs for the Year as Follows How Much Is the Total Product Costs for the Year

question 20

Multiple Choice

Rios Corporation reports costs for the year as follows: $\begin{array}{|r|r|}\hline\text { Direct Materials Used } & \$ 780,000 \\\hline \text { Wages to Line Workers } & 245,000 \\\hline \text { Office Rent } & 33,000 \\\hline \text { Indirect Materials Used } & 800,000\\\hline\end{array}$ How much is the total product costs for the year?

• A)$800,000
• B)$1,825,000
• C)$1,858,000
• D)$1,025,000

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Definitions:

AASB 128

The Australian Accounting Standards Board standard related to the accounting for investments in associates and to set out the application of the equity method when accounting for investments in associates and joint ventures.

Market Valuation

The process of determining the market value of an asset or company, based on supply, demand, and other economic factors.

Active Market

A financial market in which securities or commodities are frequently traded, showing significant liquidity and pricing information.

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies.