During the month of January, Robinson & Green Inc.had total manufacturing costs of $121,000.It incurred $44,000 of direct labor cost and $33,000 of manufacturing overhead cost during the month.If the materials inventory on January 1 was $3,300 less that the materials inventory on January 31, what was the cost of materials purchased during the month?
A) $37,000
B) $47,300
C) $40,000
D) None of these

Question

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS: Direct materials purchased [(Direct materials used^* + Difference in inventory balances) = ($44,000 + 3,300)] = $47,300 *Direct materials used = Total manufacturing costs -(Direct labor cost + Overhead cost) = $121,000 - ($44,000 + $33,000) = $44,000

During the Month of January, Robinson & Green Inc