Question

Tyare Corporation had the following inventory balances at the beginning and end of May:
May 1 May 30
Raw materials $ 26,500 $ 32,000
Finished Goods $ 76,000 $ 68,000
Work in Process $ 14,500 $ 16,654
During May, $59,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 320 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,150 of direct materials cost. The Corporation incurred $42,300 of actual manufacturing overhead cost during the month and applied $40,200 in manufacturing overhead cost.
The raw materials purchased during May totaled:___________

Answer 1

Answer:

$65,000

Explanation:

Preparation of the total amount of the raw materials purchased during May

Using this formula

May Raw materials purchased= Raw materials used during production- Beginning raw material+ Ending raw material

Let plug in the formula

May Raw materials purchased= $59,500- $26,500 + $32,000

May Raw materials purchased = $65,000

Therefore The raw materials purchased during May totaled:$65,000