Beauchesne Corporation, a manufacturing company, has provided the following data for the month of May:

Raw materials purchased during May totaled $69,000 and the cost of goods manufactured totaled $146,000.

What was the cost of raw materials used in production during May?

Question

Beauchesne Corporation, a manufacturing company, has provided the following data for the month of May:

Raw materials purchased during May totaled $69,000 and the cost of goods manufactured totaled $146,000.

What was the cost of raw materials used in production during May?

BlackTom AI · Accepted Answer

Raw materials used = beginning raw materials + purchases − ending raw materials.

1. Relevant knowledge points and concepts
- Inventory flow for raw materials: Raw materials available for use = Beginning RM inventory + Purchases. 
- Raw materials used in production = Raw materials available for use − Ending RM inventory.
- Cost of goods manufactured (COGM) includes raw materials used plus direct labor and manufacturing overhead; COGM alone doesn’t replace the inventory calculation for raw materials.

2. Step-by-step reasoning
- Start with the beginning raw materials inventory.
- Add raw materials purchased during the period to get raw materials available for use.
- Subtract the ending raw materials inventory to find the amount actually used in production.

3. Calculations with intermediate steps
- Beginning raw materials = $36,000
- Purchases during May = $69,000
- Raw materials available for use = $36,000 + $69,000 = $105,000
- Ending raw materials = $24,000
- Raw materials used = $105,000 − $24,000 = $81,000

4. Why the correct answer is correct
- The formula directly measures how much raw material left the RM inventory to enter production. After accounting for purchases and the remaining ending inventory, $81,000 is the amount consumed in manufacturing during May.

5. Why the other options are incorrect
- $105,000 equals beginning RM plus purchases but does not subtract the ending inventory (so it overstates usage).
- $36,000 is just the beginning inventory and ignores purchases and the ending balance.
- $24,000 is just the ending inventory, not the amount used.

6. Conclusion
- Therefore, the cost of raw materials used in production during May is $81,000, which matches the provided correct answer.

Beauchesne Corporation, a manufacturing company, has provided the following data for the month of May: Raw materials purchased during May totaled $69,000 and the cost of goods manufactured totaled $146,000. What was the cost of raw materials used in production during May? 单项选择题

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