Stelmack Corporation, a manufacturing Corporation, has provided data concerning

Question

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: Multiple Choice $56,000 $53,000 $70,000 $63,000

Explanation / Answer

Direct material cost = Beginning raw material+Raw material purchase-Ending raw material-Indirect material

= 20000+63000-27000-3000

Direct material cost = $53000

So answer is b) $53000

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