Question

The following information is available for the year ended December 31: Beginning raw materials inventory $ 3,900 Raw materials purchases 5,400 Ending raw materials inventory 4,400 Office supplies expense 2,400 The amount of raw materials used in production for the year is:

Answer 1

Direct material used= $4,900

Step-by-step explanation:

Giving the following information:

Beginning raw materials inventory $ 3,900

Raw materials purchases 5,400

Ending raw materials inventory 4,400

To calculate the direct material used, we need to use the following formula:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 3.900 + 5,400 - 4,400

Direct material used= $4,900