Final answer:
To find the cost of direct materials, we subtract the beginning work in process, add the ending work in process, subtract direct labor, and subtract manufacturing overhead from the cost of goods manufactured. The cost of direct materials used for the quarter is determined to be $340,000.
Step-by-step explanation:
To calculate the cost of direct materials used for the quarter, we use the formula for the Cost of Goods Manufactured (COGM), which is:
COGM = Beginning Work in Process Inventory + Total Manufacturing Costs – Ending Work in Process Inventory
Where Total Manufacturing Costs include Direct Materials, Direct Labor, and Manufacturing Overhead. Given the COGM of $1,620,000, Direct Labor of $540,000, and Manufacturing Overhead of $830,000, and knowing the Beginning and Ending Work in Process Inventory values are $330,000 and $420,000 respectively, we can set up the following equation and solve for Direct Materials:
$1,620,000 = $330,000 + (Direct Materials + $540,000 + $830,000) - $420,000
After rearranging the equation and solving for Direct Materials, we find:
Direct Materials = $1,620,000 - $330,000 + $420,000 - $540,000 - $830,000
Direct Materials = $340,000
Therefore, the cost of direct materials used for the quarter is $340,000.