Question

Direct Materials Used, Cost of Goods Manufactured In September, Lauren Ashley Company purchased materials costing $210,000 and incurred direct labor cost of $150,000. Overhead totaled $345,000 for the month. Information on inventories was as follows: September 1 September 30 Materials $110,000 $140,000 Work in process $60,000 $60,000 Finished goods $70,000 $60,000 Required: 1. What was the cost of direct materials used in September ?

Answer 1

$240,000

Step-by-step explanation:

cost of direct materials used = beginning materials (September 1 inventory) + purchases - ending materials (September 30 inventory) = $140,000 + $210,000 - $110,000 = $240,000

Direct materials are the raw materials, parts, components and supplies directly consumed during the manufacturing process.