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Problem 1.a.: Computation of Direct Material Used.Akari Inc. provided the following information for its raw material inventory account at the end of the current month:Raw Materials (RM) InventoryAccounts                 $               Accounts                                       $Beginning balance $22,600     Direct materials (DM) used           ?Purchase                $88,400    Indirect materials used             $7,600Ending Balance      $27,200Required: Compute the missing information for the direct materials used during the current month.Solution: Formula: Beginning RM+ RM Purchased= Total RM available for use- Ending RM= RM used- Indirect material used= DM used

Problem 1.a.: Computation of Direct Material Used.Akari Inc. provided the following information for its raw material inventory account at the end of the current month:Raw Materials (RM) InventoryAccounts                 $               Accounts                                       $Beginning balance $22,600     Direct materials (DM) used           ?Purchase                $88,400    Indirect materials used             $7,600Ending Balance      $27,200Required: Compute the missing information for the direct materials used during the current month.Solution: Formula: Beginning RM+ RM Purchased= Total RM available for use- Ending RM= RM used- Indirect material used= DM used

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 1.a.: Computation of Direct Material Used.
Akari Inc. provided the following information for its raw material inventory account at the end of the current month:
Raw Materials (RM) Inventory
Accounts                 $               Accounts                                       $
Beginning balance $22,600     Direct materials (DM) used           ?
Purchase                $88,400    Indirect materials used             $7,600
Ending Balance      $27,200
Required: Compute the missing information for the direct materials used during the current month.
Solution: Formula:

Beginning RM
+ RM Purchased
= Total RM available for use
- Ending RM
= RM used
- Indirect material used
= DM used

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