Using the following information, compute the direct materials used. $\begin{array}{lll}
\text { Raw materials inventory, January } 1 & 20,000 \
\text { Raw materials inventory, December } 31 & 40,000 \
\text { Work in process, January } 1 & 18,000\
\text { Work in process, December } 31 & 12,000 \
\text { Finished goods, January } 1 & 40,000 \
\text { Finished goods, December } 31 & 32,000 \
\text { Raw materials purchases } & 1,700,000\
\text { Direct labor } & 760,000 \
\text { Factory utilities } & 150,000 \
\text { Indirect labor } & 50,000 \
\text { Factory depreciation } & 400,000 \
\text { Operating expenses } & 420,000
\end{array}$

Question

Quizplus · Accepted Answer

To calculate the direct materials used, you start with the beginning raw materials inventory, add the raw materials purchases, and then subtract the ending raw materials inventory. The calculation is as follows: $20,000 + 1,700,000 - 40,000 = 1,680,000$.

Using the Following Information, Compute the Direct Materials Used A) $1,760,000