Assume the following information pertaining to Moonbeam Company: Beginning Ending Finished goods inventory $ 140,500 $ 133,450 Work in process inventory 92,000 112,750 Direct materials 125,750 140,150 Costs incurred during the period are as follows: Total manufacturing costs $ 910,000 Factory overhead 206,000 Direct materials used 161,950 Materials purchases are calculated to be:

Question

Business

Tori

8 November, 10:55

Assume the following information pertaining to Moonbeam Company: Beginning Ending Finished goods inventory $ 140,500 $ 133,450 Work in process inventory 92,000 112,750 Direct materials 125,750 140,150 Costs incurred during the period are as follows: Total manufacturing costs $ 910,000 Factory overhead 206,000 Direct materials used 161,950 Materials purchases are calculated to be:

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Answers (1)

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Savannah Henry · Answer 1

The material purchase is $176,350

Explanation:

The computation of material purchase is to be done by applying the formula which is shown below:

= Direct material used + ending balance of direct materials - beginning balance of direct material

= $161,950 + $140,150 - $125,750

= $176,350

The other items which are mentioned in the question are irrelevant. Hence, it is not to be considered in the computation part.