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Answer:
<em>The Required Reserve Ratio Is Lowered</em>
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Answer:
b. $2,580,000
Explanation:
The formula and the computation of the cost of goods manufactured is shown below:
= Direct materials used + Direct labor cost + Manufacturing overhead cost + beginning work-in-process inventory - ending work-in-process inventory
= $780,000 + $900,000 + $720,000 + $1,080,000 - $900,000
= $2,580,000
The direct material used is
= Beginning raw material inventory + purchase made - ending raw material inventory
= $300,000 + $960,000 - $480,000
= $780,000