Sometimes you may know only the total dollar amount of direct materials purchased rather than the actual
A)The total purchases amount
B)Dividing the total purchases amount by the actual number of units purchased
C)Both by using the total purchases amount and by dividing the total purchases amount by the actual number of units purchased.
D)Total cost of materials used.

Question

Quizplus · Accepted Answer

To determine the actual cost of direct materials used, both the total purchases amount and the actual number of units purchased are needed. Dividing the total purchases amount by the actual number of units will yield the cost per unit which can then be multiplied by the number of units used to determine the total cost of materials used.

Sometimes You May Know Only the Total Dollar Amount of Direct