Tyare Corporation had the following Inventory balances at the beginning and end

Question

Tyare Corporation had the following Inventory balances at the beginning and end of May Raw materials $25,500 $30,000 Pinished Goods $75,000 $66,000 $13,500 $16,500 Work in Process During May, $58,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process Inventory account. The ending Work in Process inventory account contained $7,050 of direct materials cost. The Corporation incurred $42,000 of actual manufacturing overhead cost during the month and applied $39,600 in manufacturing overhead cost The raw materials purchased during May totaled Multiple Choice $58.500 67,500 54,000

Explanation / Answer

Calculate raw material purchased :

Raw material purchase = Ending inventory of raw material+Raw material used-Beginning inventory of raw material

= (30000+58500-25500)

Raw material purchase = 63000

so answer is d) $63000

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