The following partially completed T accounts summarize the transactions of Carlton Company for last year:
At the end of the year,the company closes out the balance in the Overhead account to Cost of Goods Sold.
The cost of direct materials used in production is

Question

The following partially completed T accounts summarize the transactions of Carlton Company for last year:  
 At the end of the year,the company closes out the balance in the Overhead account to Cost of Goods Sold.
The cost of direct materials used in production is

Quizplus · Accepted Answer

The cost of direct materials used in production can be found by adding the beginning balance of Raw Materials Inventory with the purchases made during the year and subtracting the ending balance of Raw Materials Inventory. This calculation gives us $20,000 + $10,000 - $17,000 = $13,000.

The Following Partially Completed T Accounts Summarize the Transactions of Carlton