Question

Given the following costs, what is the total cost for direct materials used during the period? A) Product delivery costs $310 B) Packaging $370 C) Rent on factory equipment $810 D) Metal used in production $575 E) Wages for plant workers $770

Answer 1

The total cost of direct materials used during the period is $575, which only includes the metal used in production. Other costs like packaging and wages are excluded as they are indirect costs.

Step-by-step explanation:

The total cost for direct materials used during the period is $575. When calculating the total cost of direct materials, only the actual materials used in the production process are considered. In this case, it's the metal used in production. Packaging, product delivery, rent on factory equipment, and wages for plant workers are not included as they are considered indirect costs or overhead.

The expense categories that relate to the costs of technology and labor mentioned in the reference information can help illustrate how different types of costs are categorized in a manufacturing environment. However, in this specific case, we are focused solely on the direct material costs which would be part of the total cost calculation for producing goods.