Rayfield Company's management accountant collected the following inventory and transaction data for the month: Inventories Ending Beginning
Direct materials $220 $190
Work in process 160 140
Finished goods 190 220
The cost of goods available for sale was $1,370. Total manufacturing costs assigned to work in process during the month was $1,170. Manufacturing overhead was $334; and direct materials used were $386.
Direct materials purchased during the month were:

Question

Quizplus · Accepted Answer

To find the direct materials purchased during the month, we need to use the following formula:
Direct materials purchased = Direct materials used + Ending direct materials inventory - Beginning direct materials inventory
Direct materials used = $386
Ending direct materials inventory = $220
Beginning direct materials inventory = $190
Direct materials purchased = $386 + $220 - $190 = $416
Therefore, the answer is B.

Rayfield Company's Management Accountant Collected the Following Inventory and Transaction