Basil Industries reported the following information for December: What was the cost of the direct materials used by Basil in production?

Question

Basil Industries reported the following information for December:  What was the cost of the direct materials used by Basil in production?

Quizplus · Accepted Answer

The cost of direct materials used can be calculated using the following formula: Beginning inventory of raw materials + Purchases of raw materials - Ending inventory of raw materials = Cost of direct materials used. Plugging in the given numbers, we get:
$140,000 + $608,750 - $386,250 = $362,500, which is option B.

Basil Industries Reported the Following Information for December: What