Garrett Corporation provided the following information for the year: Beginning Balancelong dash Work-in-Process Inventory $ 25 comma 000 Ending Balancelong dash Work-in-Process Inventory 57 comma 000 Beginning Balancelong dashDirect Materials 80 comma 000 Ending Balancelong dashDirect Materials 59 comma 000 Purchaseslong dashDirect Materials 362 comma 000 Direct Labor 472 comma 000 Indirect Labor 18 comma 000 Depreciation on Factory Plant and Equipment 23 comma 000 Plant Utilities and Insurance 268 comma 000 What was the amount of direct materials used in production during the year?

Question

Business

Harmony Harper

30 May, 10:47

Garrett Corporation provided the following information for the year: Beginning Balancelong dash Work-in-Process Inventory $ 25 comma 000 Ending Balancelong dash Work-in-Process Inventory 57 comma 000 Beginning Balancelong dashDirect Materials 80 comma 000 Ending Balancelong dashDirect Materials 59 comma 000 Purchaseslong dashDirect Materials 362 comma 000 Direct Labor 472 comma 000 Indirect Labor 18 comma 000 Depreciation on Factory Plant and Equipment 23 comma 000 Plant Utilities and Insurance 268 comma 000 What was the amount of direct materials used in production during the year?

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Answers (1)

Know the Answer?

Hugh · Answer 1

Direct material used = $383000

Explanation:

Giving the following information, we need to calculate the amount of direct material used in production:

Beginning Work-in-Process Inventory $ 25000

Ending Work-in-Process Inventory 57000

Beginning Direct Materials 80000

Ending Direct Materials 59000

Purchases Materials 362000

Direct Labor 472000

Indirect Labor 18000

Depreciation on Factory Plant and Equipment 23000

Plant Utilities and Insurance 268000

Direct material used = beginning inventory direct material + purchase direct material - ending inventory direct material

Direct material used = 80000 + 362000 - 59000 = $383000