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Cost of direct material

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The Outdoor Manufacturing Co produces sporting equipment
the company maintains a single raw materials inventory account for both direct and indirect
materials. The following info came from factor ledger accountds for December

Raw materials 1-Dec $45,500.00
Work in process 1-Dec $125,000.00
finished goods 1-Dec $175,000.00
Raw materials during december $623,000.00
direct labor $435,000.00
reparis and maintenance $37,200.00
indirect materials $16,700.00
utilities $63,200.00
indirect labor $38,200.00
supervisors salaries $18,300.00
Raw materials 31-Dec $413,600.00
Work in process 31-Dec $135,000.00
finished goods 31-Dec $150,000.00

computer the direct coswt materials used during the month of december

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Solution Summary

The solution explains how to calculate the cost of direct materials used in production.

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