Direct Materials Used

Hannah Banana Bakers makes chocolate chip cookies for cafe restaurants. In June, Hannah Banana purchased $72,000 of materials. On June 1, the materials inventory was $12,960. On June 30, $4,536 of materials remained in materials inventory.

Required:

1. What is the cost of the direct materials used in production during June?

2. There is a difference between the cost of direct materials that were purchased during the month and the cost of direct materials that were used in production during the month. In this context which of the following is true.