Question

What are the materials used in production (including $32,100 of indirect materials)?

Answer 1

The materials used in production include food and beverages, capital goods, industrial supplies, and other transportation materials. Indirect materials are also used in the production process.

Step-by-step explanation:

The materials used in production include food and beverages ($201), capital goods, such as machinery and equipment, industrial supplies ($578), and other transportation materials ($63). These materials are considered inputs or factors of production that are necessary to produce goods and services. Indirect materials, which account for $32,100, are also used in the production process. These materials are not directly used in the final product but are necessary for the production process to occur.

Answer 2

The materials used in production encompass direct and indirect materials which are essential parts of the factors of production, such as labor and machinery. The indirect materials referenced, worth $32,100, are integrated into the overall production costs. These production costs can lead to manufacturing abroad where economic conditions are more favorable.

Step-by-step explanation:

Understanding the Materials Used in Production

When we discuss the materials used in production, we're referring to both direct and indirect materials. These are part of the inputs, or factors of production, which also include labor, machinery, and more. Specifically, the $32,100 of indirect materials would be part of the broader set of costs associated with the production process. Indirect materials are those that cannot be directly linked to a specific product but are essential for the production process.

Additionally, when businesses calculate the total cost of production, they also consider expenses related to food and beverages, capital goods, consumer goods, industrial supplies, and other transportation. These categories represent the types of resources, both direct and auxiliary, that businesses use to manufacture goods and provide services.

Moreover, the production cost of different items such as cell phones and athletic shoes often includes the raw materials, development, assembly, and shipping, which can be substantial given the global supply chain. Hence, it's common for products to be manufactured abroad, where factors of production may be more economically advantageous.