Opening stock of raw materials – #75,000
Purchase of raw materials – #330,000
Closing stock of raw materials – #80,000
Direct wages – #30,000
Carriages of raw materials – #10,000
Calculate the cost of raw materials used
-
A.
#495,000 -
B.
#415,000 -
C.
#325,000 -
D.
#305,000
Correct Answer: Option C
Explanation
To calculate direct materials, add beginning direct materials to direct materials purchases and subtract ending direct materials.
75,000 + 330,000 – 80,000 = 325,000