1. 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 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 ............ $1,300,000

Direct labor ................. $690,000

Factory utilities .............. $225,000

Indirect labor ................ $75,000

Factory depreciation ............ $500,000

Operating expenses .............. $630,000

A) $1,390,000. 

B) $1,330,000. 

C) $1,300,000. 

D) $1,270,000. 

2. Assuming the cost of direct materials used is $1,300,000, compute the total manufacturing costs 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) $2,790,000. 

B) $2,781,000. 

C) $2,490,000. 

D) $3,420,000. 

3. Assuming that the total manufacturing costs are $2,700,000, compute the cost of goods manufactured 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) $2,688,000. 

B) $2,691,000. 

C) $2,709,000. 

D) $2,712,000. 

4. Assuming that the cost of goods manufactured is $2,760,000 compute the cost of goods sold using the following information.

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) $2,769,000. 

B) $2,712,000. 

C) $2,748,000. 

D) $2,772,000.