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Using the Following Information Compute the Cost of Direct Materials

Question 153

Multiple Choice

Using the following information compute the cost of direct materials used.  Raw materials inventory, January 1 $ 30,000  Raw materials inventory, December 31 60,000 Work in process, January 127,000 Work in process, December 3118,000 Finished goods, January 160,000 Finished goods, December 3148,000 Raw materials purchases 1,800,000 Direct labor 890,000 Factory utilities 225,000 Indirect labor 75,000 Factory depreciation 500,000 Operating expenses 630,000\begin{array}{lll}\text { Raw materials inventory, January 1 } & \text {\$ 30,000 } \\\text { Raw materials inventory, December 31 } & 60,000 \\\text { Work in process, January } 1 & 27,000\\\text { Work in process, December } 31 & 18,000 \\\text { Finished goods, January } 1 & 60,000 \\\text { Finished goods, December } 31 & 48,000 \\\text { Raw materials purchases } & 1,800,000\\\text { Direct labor } & 890,000 \\\text { Factory utilities } & 225,000 \\\text { Indirect labor } & 75,000 \\\text { Factory depreciation } & 500,000 \\\text { Operating expenses } & 630,000\end{array}


A) $1740000.
B) $1830000.
C) $1800000.
D) $1770000.

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