telmack Corporation, a manufacturing Corporation, has provided data concerning its operations for September. The beginning balance in the raw materials account was $20,000 and the ending balance was $27,000. Raw materials purchases during the month totaled $63,000. Manufacturing overhead cost incurred during the month was $53,000, of which $3,000 consisted of raw materials classified as indirect materials. The direct materials cost for September was:

Question

Business

Yadiel Zavala

27 June, 21:05

telmack Corporation, a manufacturing Corporation, has provided data concerning its operations for September. The beginning balance in the raw materials account was $20,000 and the ending balance was $27,000. Raw materials purchases during the month totaled $63,000. Manufacturing overhead cost incurred during the month was $53,000, of which $3,000 consisted of raw materials classified as indirect materials. The direct materials cost for September was:

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Answers (1)

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Deacon Sweeney · Answer 1

Direct material = $51,000

Explanation:

Giving the following information:

Beginning inventory = $20,000

Ending inventory = $27,000.

Raw materials purchases during the month totaled $63,000.

$3,000 consisted of raw materials classified as indirect materials.

First, we need to calculate the total raw material used in production:

Raw material used = beginning inventory + purchases - ending inventory

Raw material used = 20,000 + 63,000 - 27,000 = 54,000

Now, the direct material used:

Direct material = 54,000 - 3,000 = $51,000