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.

Question

Quizplus · Accepted Answer

To find out the amount of direct materials used, we need to calculate the change in the raw materials inventory during November.

Change in raw materials inventory = raw materials inventory at the beginning of the month - raw materials inventory at the end of the month
= $4,000 - $3,000 = $1,000

Therefore, the amount of direct materials used during November = raw materials purchased + change in raw materials inventory
= $20,000 + $1,000 = $21,000

Hence, the best choice is C) $21,000.

What Was the Amount of Direct Materials Used During November