Boursaw Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured?

A) $38,000
B) $24,000
C) $33,000
D) $43,000

Question

Boursaw Corporation has provided the following data concerning last month's operations.

Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured?

A) $38,000
B) $24,000
C) $33,000
D) $43,000

Leslie Belalcazar · Accepted Answer

Final Answer : B, Explanation :  Direct materials cost for the month on the Schedule of Cost of Goods Manufactured can be calculated as:Beginning raw materials inventory + Purchases of raw materials - Ending raw materials inventory = Direct materials used in production$6,000 + $18,000 - $0 = $24,000

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