Asked by Austin Parker on May 25, 2024

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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.
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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.