Dipaola Corporation has provided the following data concerning last month’s oper
ID: 2414789 • Letter: D
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