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Melhoyo Corporation, a manufacturing company, has provided data concerning its operations for September. The beginning balance in the raw materials account was $37,000 and the ending balance was $29,000. Raw materials purchases during the month totaled $57,000. Manufacturing overhead cost incurred during the month was $102,000, of which $2,000 consisted of raw materials classified as indirect materials. The direct materials cost for September was: Group of answer choices

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Answer:

The correct answer is "$63,000".

Explanation:

Given:

Beginning balance of raw materials,

= $37,000

Purchases made,

= $57,000

Ending balance,

= $29,000

Expenses of raw material,

= $2,000

Now,

The direct material cost will be:

= [tex]Beginning \ balance+Purchases \ made-Ending \ balance-Expenses \ of \ raw \ material[/tex]= [tex]37000+57000-29000-2000[/tex]

= [tex]63,000[/tex] ($)

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