Answered

Connect with a global community of experts on IDNLearn.com. Ask your questions and get detailed, reliable answers from our community of experienced experts.

Using the following information, compute the direct materials used.
Raw materials inventory, January 1 $15000
Raw materials inventory, December 31 35000
Work in process, January 1 18000
Work in process, December 31 12000
Finished goods, January 1 40000
Finished goods, December 31 32000
Raw materials purchases 1,600,000
Direct labor 760,000
Factory utilities 150,000
Indirect labor 50,000
Factory depreciation 400,000
Operating expenses 420,000
A. $1,100,000.
B. $1,115,000.
C. $1,135,000.
D. $1,085,000.

Sagot :

Abiolataiwo2015idn

Answer:

$1,580,000

Explanation:

Computation for the direct materials used

Using this formula

Direct Material Used = Raw materials purchases + Opening Stock of Raw Material - Closing Stock of Raw Material

Let plug in the formula

Direct Material Used= $1,600,000 + $15,000 - $35,000

Direct Material Used= $1,580,000

Therefore The Direct Material Used is $1,580,000

Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. Discover the answers you need at IDNLearn.com. Thanks for visiting, and come back soon for more valuable insights.