Final answer:
To calculate direct materials on the schedule of cost of goods manufactured, add purchases to beginning raw materials inventory and subtract the ending raw materials inventory.
Option d. beginning raw materials inventory and indirect materials used is correct answer.
Step-by-step explanation:
To calculate direct materials for the schedule of cost of goods manufactured, the formula is: Start with the beginning raw materials inventory, add purchases of raw materials, and then subtract the ending raw materials inventory. It is important not to confuse direct materials with indirect materials. Indirect materials used are part of manufacturing overhead and are not subtracted in this particular calculation.
The correct option for computing direct materials is: beginning raw materials inventory + purchases – ending raw materials inventory. Therefore, the best answer to the question is option c, to subtract the ending raw materials inventory and not the indirect materials used.