Asked by Austin Parker on May 25, 2024
Verified
The cost of the raw materials used in production during the year (in thousands of dollars) was:
A) $160.
B) $190.
C) $90.
D) $150.
Raw Materials
Basic materials and substances used in the initial stages of the production process, destined to be transformed into finished goods.
Direct Labour
The cost of workers who are directly involved in the production of goods or services.
Manufacturing Overhead
The indirect costs associated with the production process, including utilities, rent, and maintenance expenses of manufacturing facilities.
- Calculate the cost of raw materials used in production.
Verified Answer
AI
ABAALA IKARAMay 29, 2024
Final Answer :
C
Explanation :
The cost of raw materials used in production is calculated as: Beginning raw materials inventory + Purchases of raw materials - Ending raw materials inventory = $40 + $120 - $70 = $90.
Learning Objectives
- Calculate the cost of raw materials used in production.