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Komok [63]
3 years ago
7

During the month of January, Marcos & Henesey, Inc. had total manufacturing costs of $165,000. It incurred $62,000 of direct

labor cost and $40,000 of manufacturing overhead cost during the month. If the materials inventory on January 1 was $5,800 less than the materials inventory on January 31, what was the cost of materials purchased during the month?
Business
1 answer:
adell [148]3 years ago
6 0

Answer:

$68,800

Explanation:

Let the direct material used be X,

Direct Material + Direct Labor + Over Head = Total product cost

X + $62,000 + $40,000 = $165,000

X + $102,000 = $165,000

X = $165,000 - $102,000

X = $63,000 Materials Used

Raw Materials used = Beginning Inventory + Purchased - Ending Inventory

Raw Materials used = Beginning Inventory + Purchased - [Beginning Inventory + $5,800]

$63,000 = Beginning Inventory + Purchased - Beginning Inventory - $5,800

$63,000 = Purchased  - $5,800

Purchased =  $63,000 + $5,800

Purchases = $68,800

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