During the month of March, Nale Co. used £300,000 of direct materials. At March 31, Nale's direct materials Stock was £50,000 more than it was at March 1. Direct material purchases during the month of March amounted to
A)£0.
B)£250,000.
C)£300,000.
D)£350,000.

Question

Quizplus · Accepted Answer

Direct materials used during the month of March = £300,000

Direct materials Stock difference between March 1 and March 31 = £50,000

To calculate the direct material purchases during the month of March, we can use the following formula:

Direct material purchases = Direct materials used during the month + Increase in direct materials stock

Direct material purchases = £300,000 + £50,000 = £350,000

Therefore, the answer is D, £350,000.

During the Month of March, Nale Co