QUESTION 3

1. Use the following facts for a manufacturer.

   Raw materials purchases	$ 200,000
   Direct labor	$ 450,000
   Indirect labor	$ 35,000
   Selling and administrative costs	$ 102,000
   Depreciation on factory equipment	$ 120,000
   Other factory costs	$ 165,000
   Sales Revenue ($100 per unit)	$ 2,296,000

   	January 1	December 31
   Raw materials	$ 15,800	$ 13,300
   Work-in-process	$ 35,700	$ 46,500
   Finished goods	$ 85,100 2,200 units	$138,400 3,340 units (not all produced in current year)

   What is the cost of direct materials used for the year?

   	A.	189,200
   	B.	200,000
   	C.	197,500
   	D.	202,500
   	E.	215,800