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

question 153

Multiple Choice

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

Conversion Costs

Expenses incurred in the process of converting raw materials into finished goods, typically including labor and overhead.

Weighted-Average Method

A cost accounting method that calculates the cost of inventory based on the average cost of all similar items in inventory, irrespective of when they were purchased.

Molding Department

A specialized section in a manufacturing facility where the molding of materials into parts or products is performed.

Conversion Costs

The combined costs of direct labor and manufacturing overheads, representing the expenses to convert raw materials into finished goods.