Dipaola Corporation has provided the following data concerning last month’s oper

Question

Dipaola Corporation has provided the following data concerning last month’s operations.

Purchases of raw materials    

$26,000

Indirect materials included in manufacturing overhead           

$6,000

Direct labor cost        

$58,000

Manufacturing overhead applied to Work in Process

$87,000

Overapplied overhead

$6,000

Beginning

Ending

Raw materials inventory        

$12,000

$18,000

Work in process inventory    

$46,000

$64,000

Finished goods inventory      

$31,000

$46,000

How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured?

A) $38,000

B) $32,000

C) $14,000

D) $26,000

Purchases of raw materials    

$26,000

Indirect materials included in manufacturing overhead           

$6,000

Direct labor cost        

$58,000

Manufacturing overhead applied to Work in Process

$87,000

Overapplied overhead

$6,000

Explanation / Answer

Calculate direct material cost for the month on the schedule of cost of goods manufactured :

So answer is c) $14000

Beginning raw material 12000 Material purchase 26000 Less: Ending raw material -18000 Raw material used 20000 Less: Indirect material -6000 Direct material cost 14000

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