Answer:
a) Cost of direct material used = $69,000
b) cost of goods sold for June = $119,000
Explanation:
Data provided in the question:
Raw materials purchased during June = $67,000
Cost of goods manufactured = $124,000
Beginning Ending
Raw Materials $23,000 $21,000
Finished Goods $32,000 $37,000
Now,
a) Cost of direct material used = Raw material available - Ending raw material
= (Beginning Raw Materials + Raw materials purchased) - Ending raw material
= $23,000 + $67,000 - $21,000
= $69,000
b) cost of goods sold for June
= Cost of goods available for sale - Ending Finished Goods
= $124,000 + $32,000 - $37,000
= $119,000
