Question:
Compute the October cost of direct materials used if raw material purchases for the month were $30,000 and the inventories were as follows:
Beginning Ending
|
Direct materials
|
$7,000
|
$4,000
|
|
Work in Process
|
$6,000
|
$7,500
|
|
Finished goods
|
$10,000
|
$12,000
|
The cost of direct materials used would be:
A) $31,500
B) $29,500
C) $27,000
D) $33,000