Question

Partially completed T-accounts and additional information for Cardinals, Inc., for the month of November appear as follows. Materials Inventory BB (11/1) 39,000 129,000 98,000 Work-In-Process Inventory BB (11/1) 69,000 Labor 98,000 Finished Goods Inventory BB (11/1) 89,000 189,000 129,000 Cost of Goods Sold Manufacturing Overhead Control 87,000 Applied Manufacturing Overhead Additional information for November follows: Labor wage rate was $35 per hour. Manufacturing overhead is applied at $29 per direct labor-hour. During the month, sales revenue was $315,000, and selling and administrative costs were $57,000. This company has no indirect materials or supplies. Required: a. What cost amount of direct materials was issued to production during November

Answer 1

$98,000

Step-by-step explanation:

The computation of the cost amount of direct material issued is shown below

It is to be equivalent to the credit side of the material inventory account i.e. $98,000 and the same is to be considered

All other information i.e. given in the question is not relevant.

hence, the cost amount of direct material issued to production is $98,000