Buster Corporation, a manufacturing company, has provided data concerning its operations for September. The beginning balance in the raw materials account was $37,000 and the ending balance was $29,000. Raw materials purchases during the month totaled $57,000. Manufacturing overhead cost incurred during the month was $102,000, of which $2,000 consisted of raw materials classified as indirect materials. The direct materials cost for September was:
A) $63,000.
B) $57,000.
C) $65,000.
D) $49,000.

Question

Quizplus · Accepted Answer

The direct materials cost is calculated as follows: Beginning raw materials ($37,000) + Purchases ($57,000) - Ending raw materials ($29,000) - Indirect materials ($2,000) = $63,000.

Buster Corporation, a Manufacturing Company, Has Provided Data Concerning Its