direct metiriales verses indirect materials The Zoe Corporation has the followin

Question

direct metiriales verses indirect materials

The Zoe Corporation has the following information fir the month of March. Prepare a (a) schedule goods manufactured, an income statement for the month ended March 31, and prepare only inventory section of the balance sheet. Difference between: direct materials versus indirect materials direct labor versus indirect labor The following information is available for Carter Corporation for 2012: Materials inventory decreased $4,000 during 2012. Materials inventory on December 31,2012. was 50% of materials inventory on January 1.2012. Beginning work in process inventory was $145,000. Ending finished goods inventory was $65,000. Purchases of direct materials were $154,700. Direct materials used were 2.5 times the cost of direct labor. Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 ess than cost of goods sold. Compute: finished goods inventory on January 1,2012 work in process inventory on December 31,2012 direct labor incurred factory overhead incurred direct materials used materials inventory on January 1,2012 materials inventory on December 31,2012 Note to students: The answers are not necessarily calculated in alphabetical order.

Explanation / Answer

Raw materials that become a part of the final good are direct material

Materials which do not become part of the final good are indirect materials , they are also considered as overhead cost

For example-

Suppose you are making a laptop, all the silicon products, plastics and metal screws that go into the final product are direct material and coal/fuel required to run the production are indirect material

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