ABC Company uses a Materials Inventory account to record both direct and indirect materials.During the month of April,the company has the following cost information:
The amount of direct materials issued is:

Question

ABC Company uses a Materials Inventory account to record both direct and indirect materials.During the month of April,the company has the following cost information: 
The amount of direct materials issued is:

Quizplus · Accepted Answer

The direct materials issued can be calculated by subtracting the ending balance of materials inventory from the beginning balance and adding any purchases made during the month. Using the information provided, the calculation would be: 
Beginning Balance: $30,000
Purchases: $70,000
Ending Balance: $10,000
Direct Materials Issued: $30,000 (Beginning Balance) + $70,000 (Purchases) - $10,000 (Ending Balance) = $90,000. Therefore, the correct answer is choice C.

ABC Company Uses a Materials Inventory Account to Record Both