Direct Materials Used Hannah Banana Bakers makes chocolate chip cookies for cafe restaurants. In June, Hannah Banana purchased $31,000 of materials. On June 1, the materials inventory was $8,680. On June 30, $3,906 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. All of the above. Hannah Banana Bakers makes chocolate chip cookies for cafe restaurants. In June, Hannah Banana purchased $31,000 of materials. On June 1, the materials inventory was $8,680. On June 30, $3,906 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. All of the above. Hannah Banana Bakers decided to let its ending inventory drop below its beginning inventory Hannah might have elected to let its ending materials inventory drop in order to save cash for purchases other than buying materials inventory Hannah might have elected to do so to reduce its materials inventory holding costs. All of the above