Question

Rextacular Manufacturing Company reported the following materials data for the month ending June 30, 2016:

Materials purchased $828,000
Materials inventory, June 1 279,000
Materials inventory, June 30 252,000
Determine the cost of direct materials used in production by Rextacular during the month ended June 30, 2016.

Answer 1

Material used = $855,000

Step-by-step explanation:

The computation of the cost of direct material used is shown below;

Material purchased = $828,000

Add:

Opening Inventory = $279,000

Less:

Closing Inventory = ($252,000)

Material used = $855,000

we simply applied the above formula so that the cost of direct material used could come

Hence, the cost of direct material used in production is $855,000