Reference no: EM132637596

Tyare Corporation had the following inventory balances at the beginning and end of May:

                                              May 1                       May 30

Raw materials                 $28,000                  $35,000

Finished Goods                $77,500                 $71,000

Work in Process               $16,000              $16,885

• During May, $61,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 350 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,300 of direct materials cost. The Corporation incurred $42,750 of actual manufacturing overhead cost during the month and applied $41,100 in manufacturing overhead cost.

Problem 1: The raw materials purchased during May totaled:

Multiple Choice

Option 1: $61,000

Option 2: $72,115

Option 3: $54,000

Option 4: $68,000