Question

Marigold Corp.'s accounting records reflect the following inventories: Dec. 31, 2019Dec. 31, 2020 Raw materials inventory$ 85000 $ 72000 Work in process inventory107000 119000 Finished goods inventory100000 92000 During 2020, Marigold purchased $1450000 of raw materials, incurred direct labor costs of $250000, and incurred manufacturing overhead totaling $160000. How much raw materials were transferred to production during 2020 for Marigold

Answer 1

Direct material used= $1,463,000

Step-by-step explanation:

Giving the following information:

Marigold purchased $1,450,000 of raw materials

Raw materials inventory:

Beginning= $85,000

Ending= $72,000

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

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 85,000 + 1,450,000 - 72,000

Direct material used= $1,463,000