Use the following information to compute the cost of direct materials used for the current year. Assume the raw materials inventory account is used only for direct materials. (Assume no indirect materials.) January 1December 31Inventories Raw materials inventory$8,900 $10,500 Work in process inventory 12,800 10,800 Finished goods inventory 9,700 6,900 Activity during current year Materials purchased $138,500 Direct labor 100,800 Factory overhead 41,700 Cost of Direct Material Used is Computed as:

The Formula will be Beginning Raw Materials inventory + Materials purchased - Ending Raw Materials…

Answered: Use the following information to…

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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Use the following information to compute the cost of direct materials used for the current year. Assume the raw materials inventory account is used only for direct materials. (Assume no indirect materials.)

	January 1	December 31
Inventories
Raw materials inventory	$	8,900	$	10,500
Work in process inventory		12,800		10,800
Finished goods inventory		9,700		6,900
Activity during current year
Materials purchased			$	138,500
Direct labor				100,800
Factory overhead				41,700

Cost of Direct Material Used is Computed as:

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