Niles Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:
Results of operations:

-The amount of direct material purchased during the year was:
A) $66,000
B) $70,000
C) $65,000
D) $74,000

Question

Niles Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:
  Results of operations:
 
-The amount of direct material purchased during the year was:
A) $66,000 
B) $70,000 
C) $65,000 
D) $74,000

Quizplus · Accepted Answer

Direct materials used in production = Beginning direct materials inventory + Purchases of direct materials - Ending direct materials inventory
Purchases of direct materials = Direct materials used in production - Beginning direct materials inventory + Ending direct materials inventory
Purchases of direct materials = $72,000 - $9,000 + $7,000 = $70,000

Niles Corporation Is a Manufacturer That Uses Job-Order Costing