Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: Randall's direct materials amounted to:
A) $25,000
B) $225,000
C) $250,000
D) $475,000

Question

Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year:  Randall's direct materials amounted to:
A) $25,000 
B) $225,000 
C) $250,000 
D) $475,000

Quizplus · Accepted Answer

Direct materials costs include the costs of materials that can be easily and conveniently traced to products, such as the $225,000 of cocoa, sugar, and other raw materials. The lubricant for oiling machinery in the amount of $25,000 and the packaging materials in the amount of $190,000 would be classified as indirect materials because they are not easily and conveniently traced to products.

Randall Company Manufactures Chocolate Bars