Question

Beginning raw materials inventory was $32,000. During the month, $276,000 of raw material was purchased. A count at the end of the month revealed that $28,000 of raw material was still present. What is the cost of direct material used?a. $276,000b. $272,000c. $280,000d. $2,000

Answer 1

Answer:

c. $280,000

Explanation:

The computation of the cost of the direct material used is shown below:

= Beginning raw material inventory + Purchase of raw material - ending raw material inventory

= $32,000 + $276,000 - $28,000

= $280,000

Beginning raw material inventory + Purchase of raw material is also called the available raw material for production use

Hence, all other options are incorrect except C. option