Using the following data for Caro Corporation how many raw materials were used i

Question

Using the following data for Caro Corporation how many raw materials were used in production this year? Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process $237,000 Actual manufacturing overhead costs $745,000 $120,800 $362,000 S63,000 S98,200 $241100 Inventories Raw materials Work in process Finished goods Beginning of Year End of Year $8,000 $15,000 S35,000 S9,000 $23,000 $38,000 $362,000o $345,000o $363,000 $379,000o

Explanation / Answer

Ans: Raw Material used in production is inventory taken out from store house to production area to produce goods. Material used in production then added to WIP inventory to calculate Cost of Production.

Calculation for the same will be as follows:

Begning Inventory + Raw Material Purchased - Closing Raw Material Inventory = Material Used in production

=9000+362000-8000= $363,000

Hence ans is Option C $363,000

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