Asked by

Joseph Escobedo
on Nov 13, 2024

verifed

Verified

Gammil Company has beginning and ending raw materials inventories of $96000 and $120000 respectively. If direct materials used were $490000 what was the cost of raw materials purchased?

A) $490000.
B) $520000.
C) $466000.
D) $514000.

Direct Materials

Direct materials refer to the raw materials that are directly incorporated into a finished product and are integral to its production, easily traceable to the goods being produced.

Raw Materials Purchased

The complete expense of raw materials purchased by a company for production purposes over a given period.

Raw Materials Inventories

Stocks of unprocessed materials that are used in the manufacturing process to produce finished goods.

  • Evaluate and scrutinize costs related to production, covering expenses for direct materials, direct labor, and overhead.
verifed

Verified Answer

SH
Samyah HaynesNov 15, 2024
Final Answer:
Get Full Answer