Question

The following data (in thousands of dollars) have been taken from the accounting records of Karmint Corporation for the just completed year: sales - $830; raw materials inventory, beginning - $50, raw materials inventory, ending - $40; purchases of raw materials - $150; direct labor - $140: manufacturing overhead - $160; administrative expenses - $120; selling expenses - $150; work in process inventory, beginning - $30; work in process inventory, ending - $50; finished goods inventory, beginning - $80; finished goods inventory, ending - $100.The cost of the raw materials used in production during the year (in thousand of dollars) was:A) $190.B) $160.C) $140.D) $200.

Answer 1

The correct answer is B: Cost of raw material= $160

Step-by-step explanation:

Giving the following information:

Sales= $830

Raw materials inventory, beginning= $50.

Raw materials inventory, ending= $40.

Purchases of raw materials= $150.

Direct labor= $140.

Manufacturing overhead= $160.

Administrative expenses= $120.

Selling expenses= $150.

Work in process inventory, beginning= $30

Work in process inventory, ending= $50.

Finished goods inventory, beginning= $80.

Finished goods inventory, ending= $100.

Cost of raw material= Raw materials inventory, beginning + Purchases of raw materials - Raw materials inventory, ending

Cost of raw material= 50 + 150 - 40= $160