Question

Compute the amount of raw materials used during November if $32,000 of raw materials were purchased during the month and if the inventories were as follows:

Inventories Balance November 1 Balance November 30
Raw materials $7,800 $4,400
Work in process $6,400 $7,900
Finished goods $10,400 $12,400
a. $40,500.
b. $40,300.
c. $37,800.
d. $43,800.

Answer 1

Results are below.

Step-by-step explanation:

Giving the following information:

Purchases= $32,000

Beginning inventory= $7,800

Ending inventory= $4,400

To calculate the direct material used, we need to use the following formula:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 7,800 + 32,000 - 4,400

Direct material used= $35,400