Compute the Amount of Direct Materials Used During August If

Compute the amount of direct materials used during August if £25,000 of raw materials were purchased during the month and the inventories were as follows:
$\begin{array}{lrr}&\text { Balance }& \text { Balance}\\ \text { inventories } & \text {August 1 } & \text { Agust 31 } &\\ \text {Raw materials. } &£ 5,000 &£ 3,000\\ \text { Work in process.} &13,000&16,000\\ \text { Finished goods } &25,000& 27,000 \\\end{array}$

A) £16,000
B) £19,000
C) £23,000
D) £27,000

Correct Answer:

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