If the cost of goods manufactured for the year was $565,000,what was the amount of direct materials used during the year?
A)$155,500.
B)$140,500.
C)$150,000.
D)$145,500.
E)some other amount.

Question

Quizplus · Accepted Answer

Direct materials are a component of the cost of goods manufactured. The amount of direct materials used during the year can be calculated by subtracting the cost of direct labor and manufacturing overhead from the cost of goods manufactured. In this case, the cost of direct materials used during the year is $565,000 - $140,500 = $155,500.

If the Cost of Goods Manufactured for the Year Was