*Assuming that the total manufacturing costs are $2,700,000, compute the cost of
ID: 2492719 • Letter: #
Question
*Assuming that the total manufacturing costs are $2,700,000, compute the cost of raw materials used using the information below.
Raw materials inventory, January 1 $ 30,000
Raw materials inventory, December 31 60,000
Work in process, January 1 27,000
Work in process, December 31 18,000
Finished goods, January 1 60,000
Finished goods, December 31 48,000
Raw materials purchases 1,300,000
Direct labor 690,000
Factory utilities 225,000
Indirect labor 75,000
Factory depreciation 500,000
Operating expenses 630,000
A. None of these
B.$1,270,000.00
C. $2,456,000.00
D.1,330,000.00
E. 1,812,000.00
Explanation / Answer
Assume the cost of Raw materials used is k Details Amt $ Opening Inventory Raw materials Jan 1 30,000 Add Purchase of Raw Materials 1,300,000 Less Closing inventory Raw Materials Dec 31. (60,000) Cost Of Raw Material used 1,270,000 So Cost of Raw material used is $1,270,000 option B is correct
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