Question

Direct Materials Used in Production

Slapshot Company makes ice hockey sticks. On June 1, Slapshot had $48,000 of materials in inventory. During the month of June, the company purchased $132,000 of materials. On June 30, materials inventory equaled $45,000.
Required:
Calculate the direct materials used in production for the month of June.

Answer 1

$135,000

Step-by-step explanation:

The direct materials used in production for the month of June is computed as;

= Materials inventory at June 1 + Materials purchased during the month of June - Materials inventory at June 30

= $48,000 + $132,000 - $45,000

= $135,000

Therefore, the direct materials used in production for the month of June is $135,000