A company works on three jobs and incurs the following: Direct materials - $50,000 and Direct labor - $100,000. The company uses
1 answer:
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Answer:
The correct answer is "$120,250".
Explanation:
The given values are:
Opening inventory
= $38,500
Closing inventory
= $15,250
Purchases
= $97,000
Now,
The cost of materials used during the month of February will be:
= Opening Inventory + Purchases - Closing Inventory
On putting the estimated values in the above formula, we get
=
= ($)