Calculate the cost of raw materials used?

Opening stock of raw materials – #75,000
Purchase of raw materials – #330,000
Closing stock of raw materials – #80,000
Direct wages – #30,000
Carriages of raw materials – #10,000

A. #495,000
B. #415,000
C. #325,000
D. #305,000

Correct Answer:

Option C – #325,000

Explanation

To calculate direct materials, add beginning direct materials to direct materials purchases and subtract ending direct materials.

75,000 + 330,000 – 80,000 = 325,000