Arturo Manufacturing Company provided the following information for the year 2012: What was the amount of direct materials used in production?

Question

Arturo Manufacturing Company provided the following information for the year 2012:  What was the amount of direct materials used in production?

Quizplus · Accepted Answer

Direct materials used in production can be calculated using the following formula: Beginning Raw Materials Inventory + Purchases of Raw Materials - Ending Raw Materials Inventory = Direct Materials Used in Production. Using the provided information:

Beginning Raw Materials Inventory: $20,000
Purchases of Raw Materials: $325,000
Ending Raw Materials Inventory: $153,000

Direct Materials Used in Production = $20,000 + $325,000 - $153,000 = $192,000. Therefore, the correct answer is C.

Arturo Manufacturing Company Provided the Following Information for the Year