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26 December, 07:42

Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $23,500 and the ending balance was $43,000. Raw materials purchases during the month totaled $70,000. Manufacturing overhead cost incurred during the month was $114,500, of which $2,700 consisted of raw materials classified as indirect materials. The direct materials cost for May was:

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  1. 26 December, 07:54
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    Direct Materials Used In May $ 50,500

    Explanation:

    Bottum Corporation

    We add the beginning inventory with the purchases and subtract the ending inventory to get the direct materials used.

    Beginning balance Raw materials $23,500

    Add Raw materials purchases $70,000

    Less Ending balance Raw materials $43,000

    Direct Materials Used In May $ 50,500

    The cost of the purchases remains the same that is $ 70,000 but the direct materials used during May are $ 50,500
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