Ask Question
31 October, 22:55

Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $27,000 and the ending balance was $50,000. Raw materials purchases during the month totaled $77,000. Manufacturing overhead cost incurred during the month was $118,000, of which $3,400 consisted of raw materials classified as indirect materials. The direct materials cost for May was:

+1
Answers (1)
  1. 1 November, 02:42
    0
    The direct materials cost for May was $50,600

    Explanation:

    The computation of the direct materials cost is shown below:

    = Beginning balance of raw material + purchase during the month - indirect raw material - ending balance of raw material

    = $27,000 + $77,000 - $3,400 - $50,000

    = $50,600

    For computing the actual amount of the direct material we have to deduct the indirect raw material and the ending balance too.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers