Answer:
Direct Material Cost for July=$60,600
Explanation:
The direct materials cost for July is is calculated as:
Raw Material in the beginning=$34000
Additional Raw materials purchases=$69500
Total Raw material Available=Raw Material in the beginning+Additional Raw materials purchases
Total Raw material Available=$34000+$69500
Total Raw material Available=$103500
Ending Raw material=$33500
Raw material used in production=Total Raw material Available-Ending Raw material
Raw material used in production=$103500-$33500
Raw material used in production=$70000
Indirect materials included in manufacturing=$9400
Direct Material Cost=Raw material used in production-Indirect materials included in manufacturing
Direct Material Cost=$70000-$9400
Direct Material Cost=$60,600
