Stelmack Corporation, a manufacturing Corporation, has provided data concerning its operations for September. The beginning balance in the raw materials account was $20,000 and the ending balance was $27,000. Raw materials purchases during the month totaled $63,000. Manufacturing overhead cost incurred during the month was $53,000, of which $3,000 consisted of raw materials classified as indirect materials. The direct materials cost for September was:

Question

Quizplus · Accepted Answer

The direct materials cost can be calculated as follows:
Beginning raw materials balance + Raw materials purchases - Ending raw materials balance - Indirect materials = Direct materials cost
$20,000 + $63,000 - $27,000 - $3,000 = $53,000

Stelmack Corporation, a Manufacturing Corporation, Has Provided Data Concerning Its