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jek_recluse [69]
3 years ago
5

Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in t

he raw materials account was $24,000 and the ending balance was $44,000. Raw materials purchases during the month totaled $71,000. Manufacturing overhead cost incurred during the month was $115,000, of which $2,800 consisted of raw materials classified as indirect materials. The direct materials cost for May was:
Business
1 answer:
Alisiya [41]3 years ago
3 0

Answer:

$48,200

Explanation:

The computation of the direct material cost for the month of May is shown below:

Direct materials cost = Beginning raw materials inventory + purchases made  - Ending balance of raw materials - Indirect materials

= $24,000 + $71,000 - $44,000 - $2,800

= $48,200

Hence, the direct material cost for the month of May is $48,200

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