The following information is available for ABC Company for the year ended December 31: Beginning raw materials inventory Raw materials purchases Ending raw materials inventory. Direct labor expense What is the amount of direct materials used in production for the year? Multiple Choice $5,200. $7,500. $4,700. $8,900. $ 3,700 5,200 4,200 2,200
The following information is available for ABC Company for the year ended December 31: Beginning raw materials inventory Raw materials purchases Ending raw materials inventory. Direct labor expense What is the amount of direct materials used in production for the year? Multiple Choice $5,200. $7,500. $4,700. $8,900. $ 3,700 5,200 4,200 2,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:The following information is available for ABC Company for the year ended December 31:
Beginning raw materials inventory
Raw materials purchases
Ending raw materials inventory
Direct labor expense
What is the amount of direct materials used in production for the year?
Multiple Choice
$5,200.
$7,500.
$4,700.
$8,900.
$ 3,700
5,200
4,200
2,200
Expert Solution

Explantion -
Direct Materials -
Direct Materials are the raw material inventory used in the company. It includes Beginning + Purchases - Ending Inventory.
It is the Raw Materials used to manufacture the product.
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