Use the Following Information for Hayes, Inc -What Is the Correct Amount of Direct Materials Used, Based

question 196

Multiple Choice

Use the following information for Hayes, Inc., as of December 31 to answer the next questions:
$\begin{array}{lr}\text { Administrative salaries } & \$ 32,000 \\\text { Depreciation of factory equipment } & 25,000 \\\text { Depreciation of delivery vehicles } & 8,000 \\\text { Direct labor } & 68,000 \\\text { Factory supplies used } & 12,000 \\\text { Finished goods inventory, January 1 } & 57,000 \\\text { Finished goods inventory, December 31 } & 68,000 \\\text { Factory insurance } & 15,500\\\text { Interest expense } & 12,000 \\\text { Factory utilities } & 14,000 \\\text { Factory maintenance } & 7,500 \\\text { Raw materials inventory, January 1 } & 8,000 \\\text { Raw materials inventory, December 31 } & 4,000 \\\text { Raw material purchases } & 125,000 \\\text { Rent on factory building } & 25,000 \\\text { Repairs of factory equipment } & 11,500 \\\text { Sales commissions } & 37,500 \\\text { Goods in process inventory, January 1 } & 3,500 \\\text { Goods in process inventory, December 31 } & 2,000\end{array}$
-What is the correct amount of direct materials used, based on the Hayes Inc. information?

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

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Definitions:

Complete Agreement

A situation or outcome in which all parties involved fully agree on all terms and conditions, without any dissent.

Structural Capital

The non-human assets of an organization, including processes, databases, patents, and the organization's structure, which enable productivity and innovation.

Skills And Abilities

The talents and capacities individuals possess that allow them to perform tasks effectively.

Systems Perspective

An analytical approach that views an organization as an arrangement of interrelated parts working together to accomplish specific goals.