Question
Data pertaining to the direct materials inventories are as follows: Beginning Inventory Ending Inventory Wood 2,100 b.f. 1,600 b.f. Fiberglass 1,100 yards 2,100 yards Variable
Data pertaining to the direct materials inventories are as follows: Beginning Inventory Ending Inventory Wood 2,100 b.f. 1,600 b.f. Fiberglass 1,100 yards 2,100 yards Variable manufacturing overhead is $20 per direct labor-hour. There are also $28,770 in fixed manufacturing overhead cots budgeted for 2018. Both variable and fixed overhead costs are allocated based on direct manufacturing labor-hours. Other data include the following: 2017 Unit Price 2018 Unit Price Wood $38.00 per b.f. $40.00 per b.f. Fiberglass $14 per yard $15 per yard Direct labor $34.00 per hour $35.00 per hour Assume Fullerton uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations.
What is total cost of direct materials to be used? Group of answer choices $3,352,250 $4,135,300 $4,217,500 $3,714,250
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