Rocky Corp.'s Direct Material Inventory balance at the end of 2009 and 2010 was $200,000 and $150,000, respectively. During 2010, Rocky bought $400,000 of direct materials. During 2010, how many dollars of direct materials were transferred to Work in Process Inventory?

Question

Quizplus · Accepted Answer

The amount of direct materials transferred to Work in Process Inventory can be calculated using the formula: Beginning Direct Material Inventory + Purchases - Ending Direct Material Inventory. So, $200,000 + $400,000 - $150,000 = $450,000.