Assume the following information pertaining to Moonbeam Company:

Beginning Finished Goods Inventory = $130,000

Ending Finished Goods Inventory = $124,000

Beginning WIP Inventory = $85,000

Ending WIP Inventory = $104,000

Beginning Direct Materials = $117,000

Ending Direct Materials = $130,000

Costs incurred during the period are as follows:

Total Manufacturing Costs = $896,000

Factory Overhead = $199,000

Direct Materials Used = $156.000

Materials purchases are calculated to be:

a) $143,000.

b) $156,000.

c) $91,000.

d) $169,000.

e) $140,000.

d. Material Purchases = $ 169,000

Explanation:

Cost Of Goods Statement.

Beginning Direct Materials = $117,000

Add Material Purchases = $ 169,000

Less Ending Direct Materials = $130,000

Direct Materials Used = $156,000 (given)

Direct Labor = $ 697,000

Factory Overhead = $199,000

Total Manufacturing Costs = $896,000

Beginning WIP Inventory = $85,000

Ending WIP Inventory = $104,000

Cost of Goods Manufactured = $ 1033,000

Beginning Finished Goods Inventory = $130,000

Ending Finished Goods Inventory = $124,000

Cost Of Goods Statement = $ 1039,000