Question

Use the following information to compute the cost of direct materials used for the current year. (Assume no indirect materials.)
January 1 December 31.
Inventories Raw materials inventory $ 6,900 $ 11,600
Work in process inventory 12,600 12,000
Finished goods inventory 9,700 7,400
Activity during current year
Materials purchased $ 133,500
Direct labor 104,000
Factory overhead 46,500
Cost of Direct Material Used is Computed as:________

Answer 1

Answer:

$128,800

Explanation:

Open a Direct Materials T - Account to calculate the Cost of Direct Material Used.

Direct Materials T - Account

Debit :

Beginning Materials Inventory                $ 6,900

Materials Purchases                              $ 133,500

Total                                                        $140,400

Credit :

Materials Used (Balancing figure)       $128,800

Ending Materials Inventory                    $ 11,600

Total                                                       $140,400

Therefore,

Cost of Direct Material Used is $128,800