Homework SourseMcGown Corp has the following information Additional informa
McGown Corp. has the following information:
Additional information for the year is as follows:
Compute the direct materials used in production.
$20,000
$110,000
$30,000
$90,000
| Beginning Inventory (1/1) | Ending Inventory (12/31) | |||||
| Raw Materials Inventory | $ | 20,000 | $ | 30,000 | ||
| Work in Process Inventory | $ | 15,000 | $ | 18,000 | ||
| Finished Goods Inventory | $ | 30,000 | $ | 20,000 | ||
Solution
the direct materials used in production=Raw materials purchases+Beginning raw materials inventory-ending raw material inventory
which is equal to
=(100,000+20000-30000)
=$90000.
