Asked by Clara Candelario on May 15, 2024
Verified
The cost of the raw materials used in production during the year (in thousands of dollars) was:
A) $250.
B) $170.
C) $240.
D) $190.
Raw Materials Inventory
Stocks of the basic materials and components that are used in production but have not yet been processed or used in the manufacturing process.
Direct Labour
Work specifically conducted by employees directly involved in the manufacturing process of a product.
Manufacturing Overhead
All manufacturing costs excluding direct labor and direct materials, such as utilities and rent for production facilities.
- Determine the price of raw inputs involved in production.
Verified Answer
ZT
Zachary TaylorMay 22, 2024
Final Answer :
B
Explanation :
The cost of raw materials used in production is calculated as: Beginning raw materials inventory + Purchases of raw materials - Ending raw materials inventory = $60 + $180 - $70 = $170.
Learning Objectives
- Determine the price of raw inputs involved in production.