Question

Delhoyo Corporation, a manufacturing company, has provided data concerning its operations for September. The beginning balance in the raw materials account was $37,000 and the ending balance was $29,000. Raw materials purchases during the month totaled $57,000. The direct materials cost for September was:

Answer 1

Answer:

$65,000

Explanation:

Computation of the given data are as follows:

Direct material cost = Beginning balance + Purchase - Ending balance

Where, Beginning balance = $37,000

Purchase = $57,000

Ending balance = $29,000

So, by putting the value in the formula, we get

Direct material cost = $37,000 + $57,000 - $29,000

= $65,000