Barron's Corp Barron's Direct Material Costs Amounted To:
A) $600,000
B) $605,000

Barron's Corp. manufactures custom made wire baskets used to hold computer components in computer manufacturing operations.
Wages: $\begin{array}{lr}\text { Machine operators } & \$ 400,000 \\\text { Maintenance workers } & 45,000 \\\text { Factory supervisors } & 90,000\\\text { Materials used :}\\\text { Metal wire } & \$ 600,000 \\\text { Lubricant for oiling machines } & 5,000 \\\text { Clear plastic coating } & 420,000\end{array}$
Barron's direct material costs amounted to:

A) $600,000
B) $605,000
C) $1,020,000
D) $1,025,000

Correct Answer:

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