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.

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Definitions:

Wilcoxon Rank-Sum Test

A nonparametric statistical test used to compare two independent samples to determine if they come from the same distribution.

Nonparametric Test

A statistical test that does not assume a specific distribution for the variable being analyzed.

Simple Random Samples

A subset of a statistical population in which each member of the subset has an equal probability of being chosen.

Wilcoxon Rank Sum Test

A nonparametric statistical test that compares two independent samples to determine if they come from the same distribution.