Current information for the Healey Company follows: $$\begin{array} { l | c }
\text { Beginning raw materials inventory } & \$ 15,200 \
\hline \text { Raw material purchases } & 60,000 \
\hline \text { Ending raw materials inventory } & 16,600 \
\hline \text { Beginning work in process inventory } & 22,400 \
\hline \text { Ending work in process inventory } & 28,000 \
\hline \text { Direct labor } & 42,800 \
\hline \text { Total factory overhead } & 30,000
\end{array}$$ All raw materials used were traceable to specific units of product.
-Healey Company's direct materials used for the year is:
A) $75,200.
B) $58,600.
C) $76,600.
D) $61,400.
E) $60,000.

Question

Current information for the Healey Company follows: $$\begin{array} { l | c } 
\text { Beginning raw materials inventory } & \$ 15,200 \
\hline \text { Raw material purchases } & 60,000 \
\hline \text { Ending raw materials inventory } & 16,600 \
\hline \text { Beginning work in process inventory } & 22,400 \
\hline \text { Ending work in process inventory } & 28,000 \
\hline \text { Direct labor } & 42,800 \
\hline \text { Total factory overhead } & 30,000
\end{array}$$ All raw materials used were traceable to specific units of product. 
-Healey Company's direct materials used for the year is:
A) $75,200.
B) $58,600.
C) $76,600.
D) $61,400.
E) $60,000.

Quizplus · Accepted Answer

The information provided states that all raw materials used were traceable to specific units of product. Therefore, we can assume that the direct materials used were calculated based on the amount of raw materials used in production. The only amount given in the information is the product code "11ea84d2_7858_b755_a79c_f373bbfd27b7_TB2625_00," which does not contain any relevant numerical data. Therefore, we cannot rely on this code to calculate direct materials used. The only answer choice that is based purely on guesswork is option B.

Current Information for the Healey Company Follows All Raw Materials Used Were Traceable to Specific Units of |