Using the following information, compute the direct materials used. Raw material

Question

Using the following information, compute the direct materials used. Raw materials inventory, January 1 $ 40,000 Raw materials inventory, December 31 20,000 Work in process, January 1 18,000 Work in process, December 31 12,000 Finished goods, January 1 40,000 Finished goods, December 31 32,000 Raw materials purchases 1, 200,000 Direct labor 560,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Operating expenses 420,000 $1, 200,000. $1, 220,000. $1,180,000. $1, 240,000.

Explanation / Answer

Direct material used= Raw material inventory January 1 +Raw material purchases- Raw material inventory December 31        

Direct material used=40,000+1200,000-20000

                                      =1220000

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