Question

If the December 1 balance in the Direct Materials Inventory account was $31,000, the December 31 balance was $38,500, and $185,000 of direct materials were issued to production during December, what was the amount of direct materials purchased during the month?

Answer 1

We can use the following formula to calculate the amount of direct materials purchased during the month:

Direct Materials Purchased = Ending Direct Materials Inventory Balance - Beginning Direct Materials Inventory Balance + Direct Materials Issued to Production

Substituting the given values, we get:

Direct Materials Purchased = $38,500 - $31,000 + $185,000

Direct Materials Purchased = $192,500

Therefore, the amount of direct materials purchased during the month was $192,500.