Question

Hunkins Corporation has provided the following data concerning last month's operations. Purchases of raw materials $ 33,000 Indirect materials included in manufacturing overhead $ 4,000 Direct labor cost $ 58,000 Manufacturing overhead applied to Work in Process $ 91,000 Beginning Ending Raw materials inventory $ 14,000 $ 20,000 Work in process inventory $ 57,000 $ 70,000 How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured?

Answer 1

The direct materials cost for the month is calculated to be $27,000, by adding the beginning raw materials inventory to the purchases and subtracting the ending inventory.

Step-by-step explanation:

To calculate the direct materials cost for the month on the Schedule of Cost of Goods Manufactured, we need to consider the following formula:

• Direct Materials Cost = (Beginning Raw Materials Inventory + Purchases of Raw Materials) - Ending Raw Materials Inventory

Using the values provided:

• Beginning Raw Materials Inventory = $14,000
• Purchases of Raw Materials = $33,000
• Ending Raw Materials Inventory = $20,000

Now let's perform the calculation:

• Direct Materials Cost = ($14,000 + $33,000) - $20,000
• Direct Materials Cost = $47,000 - $20,000
• Direct Materials Cost = $27,000

Therefore, the direct materials cost for the month is $27,000.