A staff accountant at Ysidro Fabricators in San Ysidro, CA has provided data concerning its operations for July. The beginning balance in the raw materials account was $20,500 and the ending balance was $37,000. Raw materials purchases during the month totaled $64,000. Manufacturing overhead cost incurred during the month was $111,500, of which $2,100 consisted of raw materials classified as indirect materials. The direct materials cost for July was:

$88,900

Explanation:

Particulars                                               Amount

Manufacturing OH Cost                        $109,400 (111,500-2100)              

Add: Ending materials                           $64,000

                                                               $173,400

Less: Beginning materials  $20,500

Materials purchased           $64,000    $84,500

Direct material cost                              $88,900

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