The Following Information Is Available for the First Month of Operations

question 120

Multiple Choice

The following information is available for the first month of operations for Crawford, Inc.: $\begin{array}{|l|l|}\hline\$ 570,000 & \text { Sales } \\\hline 210,000 & \text { Gross profit } \\\hline 20,000 & \text { Indirect labor } \\\hline 9,000 & \text { Indirect materials } \\\hline 7,500 & \text { Other factory overhead } \\\hline 250,000 & \text { Materials purchased } \\\hline 420,000 & \text { Total manufacturing costs } \\\hline 10,000 & \text { Materials irventory, end of period } \\\hline\end{array}$
Refer to the information provided for Crawford Inc. Calculate direct materials cost used in production.

• A) $231,000
• B) $240,000
• C) $250,000
• D) $249,000

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Definitions:

Credit Card

A plastic card issued by a financial institution that allows the holder to borrow funds to pay for goods and services.

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The act of paying back money that was borrowed from a lender.

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A law permitting a debtor to retain the family home, either in its entirety or up to a specified dollar amount, free from the claims of unsecured creditors or trustees in bankruptcy.

Debtor

An individual or entity that owes money or an obligation to another, called the creditor.