A company compiled the following information for the current year. (Assume that all raw materials used were direct materials.)
Raw materials inventory, January 1
$20000
Raw materials inventory, December 31
50000
Work in process, January 1
27000
Work in process, December 31
18000
Finished goods, January 1
60000
Finished goods, December 31
48000
Raw materials purchases
2000000
Direct labor
890000
Factory utilities
225000
Indirect labor
Factory depreciation
Operating expenses
75000
500000
630000
What is the cost of direct materials used during the period?
$2000000.
© $2020000.
$1950000.
© $1970000.
What is the cost of direct materials used during the period?
