Figure 14_03
Use the Following Information for Acme, Inc -What Is the Correct Amount of Direct Materials Used?
A)

question 72

Multiple Choice

Figure 14_03
Use the following information for Acme, Inc., as of December 31
$$\begin{array} { l r } \text { Administrative salaries } & \$ 32,000 \\\text { Depreciation of factory equipment } & 25,000 \\\text { Depreciation of delivery vehicles } & 9,000 \\\text { Direct labor } & 68,000 \\\text { Factory supplies used } & 12,000 \\\text { Finished goods inventory, January 1 } & 57,000 \\\text { Finished goods inventory, December } 31 & 68,000 \\\text { Factory insurance } & 15,500 \\\text { Interest expense } & 12,000 \\\text { Factory utilities } & 14,000 \\\text { Factory maintenance } & 7,500 \\\text { Raw materials inventory, January 1 } & 8,000 \\\text { Raw materials inventory, December 31 } & 4,000 \\\text { Raw material purchases } & 125,000 \\\text { Rent on factory building } & 25,000 \\\text { Repairs of factory equipment } & 11,500 \\\text { Sales commissions } & 37,500 \\\text { Goods in process inventory, January } 1 & 3,500 \\\text { Goods in process inventory, December } 31 & 2,000\end{array}$$


-What is the correct amount of direct materials used?

• A) $141,000.
• B) $125,000.
• C) $137,000.
• D) $129,000.
• E) $138,000.

---

Definitions:

Clusters

Groups or collections of similar items, events, or characteristics closely positioned or occurring together.

Behavior

The actions or reactions of an individual or group in response to external or internal stimuli.

Conflict Avoidance

A strategy or approach where individuals preemptively avoid situations or discussions that are likely to lead to disagreements or disputes.

Marriages

A socially, culturally, and legally recognized union between individuals that establishes rights and obligations between them and their children, and between them and their in-laws.