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20 December, 16:04

What is the cost of materials available for use assuming the following data? Materials inventory, January 1 - $33,660; materials purchases - $148,800; direct labor - $120,000; work in process inventory, January 1 - $336,000; selling expense - $28,800; materials inventory, December 31 - $48,000; manufacturing overhead - $360,000; work in process inventory, December 31 - $288,000; transportation-in - $600.

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  1. 20 December, 17:27
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    Direct materials for use = $183,060

    Explanation:

    Giving the following information:

    Materials inventory, January 1 - $33,660

    Materials purchases - $148,800

    Material transportation-in - $600.

    The material transportation is part of the cost of materials. We need to use the following formula:

    Direct materials for use = beginning inventory + purchases

    Direct materials for use = 33,660 + (148,800 + 600)

    Direct materials for use = $183,060
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