Question

Using the following information, compute the direct materials used.

Raw materials inventory, January 1 $15000
Raw materials inventory, December 31 35000
Work in process, January 1 18000
Work in process, December 31 12000
Finished goods, January 1 40000
Finished goods, December 31 32000
Raw materials purchases 1,600,000
Direct labor 760,000
Factory utilities 150,000
Indirect labor 50,000
Factory depreciation 400,000
Operating expenses 420,000
A. $1,100,000.
B. $1,115,000.
C. $1,135,000.
D. $1,085,000.

Answer 1

$1,580,000

Step-by-step explanation:

Computation for the direct materials used

Using this formula

Direct Material Used = Raw materials purchases + Opening Stock of Raw Material - Closing Stock of Raw Material

Let plug in the formula

Direct Material Used= $1,600,000 + $15,000 - $35,000

Direct Material Used= $1,580,000

Therefore The Direct Material Used is $1,580,000