What Was the Amount of Direct Materials Used During November

question 105

Multiple Choice

What was the amount of direct materials used during November if $20,000 in raw materials were purchased during the month and if the inventories were as follows?
$\begin{array}{lrr}&\text { Balance }&\text { Balance }\\&\text { November 1}&\text { November 30}\\\text { Raw materials } & \$ 4,000 & \$ 3,000 \\\text { Work in process } & \$ 12,000 & \$ 15,000 \\\text { Finished oonds } & \$ 24,000 & \$ 27000\end{array}$

• A) $15,000.
• B) $20,000.
• C) $21,000.
• D) $24,000.

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Definitions:

Cost Formulas

Equations used to calculate the costs associated with the production of goods or services, often involving fixed and variable components.

Plane Operating Costs

The expenses related to operating an aircraft, including fuel, maintenance, crew salaries, and hangar fees.

Planning Budget

A budget prepared for a specific level of activity, used as a tool for decision-making and planning in financial management.

Fixed And Variable Cost

Costs that remain constant regardless of the level of production or sales (fixed), and costs that vary directly with the level of production or sales (variable).