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Chapter 16: Q16-8SE (page 887)

Computing direct materials used

Tuscany, Inc. has compiled the following data:

Purchases of Direct Materials $ 6,300

Freight In 400

Property Taxes 800

Ending Direct Materials 1,300

Beginning Direct Materials 4,100

Compute the amount of direct materials used.

Short Answer

Expert verified

The direct material used by the Tuscany Inc is $9,500

Step by step solution

01

Definition of Direct Material

The direct material is defined as the cost incurred by the business on the raw material which is used in the production process directly.

02

Computation of direct material

Computation of Direct Material Used

Amount ($)

Beginning Direct Materials

$4,100

Add: Purchase of direct materials

$6,300

Add: Freight in

$400

Direct Materials Available

$10,800

Less: Ending Direct Material

-$1,300

Direct Material used

$9,500

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Most popular questions from this chapter

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