Question

Walker Manufacturing Company reported the following materials data for the month ending June 30: Materials purchased $200,600 Materials inventory, June 1 63,400 Materials inventory, June 30 52,800 Determine the cost of direct materials used in production by Walker during the month ended June 30.

Answer 1

$211,200

Step-by-step explanation:

Data provided

Material purchased = $200,600

Opening inventory = $63,400

Closing inventory = $52,800

The computation of direct materials is given below:-

Direct material used = Material purchased + Opening inventory - Closing inventory

= $200,600 + $63,400 - $52,800

= $264,000 - $52,800

= $211,200

So, for computing the cost of direct material used we simply applied the above formula.