Using the given information find the cost of direct material used: Ending inventory of raw materials OMR 1,000 Beginning inventory of raw materials OMR 1,500 Material used as indirect OMR 500 Purchase of materials OMR 2,000 a. OMR 5,000 O b. OMR 2,000 c. OMR 2,500 d. OMR 3,000

Using the given information find the cost of direct material used: Ending inventory of raw materials OMR 1,000 Beginning inventory of raw materials OMR 1,500 Material used as indirect OMR 500 Purchase of materials OMR 2,000 a. OMR 5,000 O b. OMR 2,000 c. OMR 2,500 d. OMR 3,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 32P: Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Using the given information find the cost
of direct material used:
Ending inventory of raw materials OMR 1,000
Beginning inventory of raw materials OMR
1,500
Material used as indirect OMR 500
Purchase of materials OMR 2,000
O a. OMR 5,000
b. OMR 2,000
O c. OMR 2,500
O d. OMR 3,000

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