Q16-8SE
Question
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.
Step-by-Step Solution
Verified Answer
The direct material used by the Tuscany Inc is $9,500
1Definition of Direct Material
The direct material is defined as the cost incurred by the business on the raw material which is used in the production process directly.
2Computation of direct material
Computation of Direct Material Used | |
| Amount ($) |
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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