bottum corporation, a manufacturing corporation, has provided data concerning its operations for may. the beginning balance in the raw materials account was $26,000 and the ending balance was $48,000. raw materials purchases during the month totaled $75,000. manufacturing overhead cost incurred during the month was $117,000, of which $3,200 consisted of raw materials classified as indirect materials. the direct materials cost for may was:

multiple choice

$53,000

$75,000

$49,800

$97,000

Question

bottum corporation, a manufacturing corporation, has provided data concerning its operations for may. the beginning balance in the raw materials account was $26,000 and the ending balance was $48,000. raw materials purchases during the month totaled $75,000. manufacturing overhead cost incurred during the month was $117,000, of which $3,200 consisted of raw materials classified as indirect materials. the direct materials cost for may was:

multiple choice

$53,000

$75,000

$49,800

$97,000

multiple choice

$53,000

$75,000

$49,800

$97,000

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "multiple_choice_formatter", "explain_then_answer", "quick" ], "needs_drawing": false, "concepts_used": [ "Indirect Materials Calculation" ], "new_concepts": [ "Direct Materials Cost Calculation" ], "current_concepts": [ "Indirect Materials Calculation", "Direct Materials Cost Calculation" ] } ## Calculate total raw materials used in production $$ \begin{aligned} \text{Beginning Raw Materials} &= \$26,000 \ \text{Purchases of Raw Materials} &= \$75,000 \ \text{Ending Raw Materials} &= \$48,000 \ \text{Total Raw Materials Used} &= \text{Beginning Balance} + \text{Purchases} - \text{Ending Balance} \ &= \$26,000 + \$75,000 - \$48,000 \ &= \$53,000 \end{aligned} $$ ## Calculate direct materials cost $$ \begin{aligned} \text{Indirect Materials Used} &= \$3,200 \ \text{Direct Materials Cost} &= \text{Total Raw Materials Used} - \text{Indirect Materials Used} \ &= \$53,000 - \$3,200 \ &= \$49,800 \end{aligned} $$

(A) $53,000

(B) $75,000

(C) $49,800

(D) $97,000

{ "subject": "Business", "question_type": "Multiple Choice", "knowledge_point": [ "Business", "Accounting", "Direct Materials Cost Calculation" ] }

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Explanation:

Calculate total raw materials used in production

Calculate direct materials cost

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