Cardsheet Company The following partially completed T accounts summarize the transactions of Cardsheet Company for last year:

-The cost of direct materials used in production is
A)$15,000.
B)$11,000.
C)$29,000.
D)$62,300.

Question

Cardsheet Company The following partially completed T accounts summarize the transactions of Cardsheet Company for last year:

-The cost of direct materials used in production is
A)$15,000. 
B)$11,000. 
C)$29,000. 
D)$62,300.

Quizplus · Accepted Answer

The direct materials account has a beginning balance of $8,000, and the company purchased $18,000 worth of direct materials during the year. Therefore, the total available direct materials were $26,000. The ending balance in the direct materials account is $3,000. To calculate the cost of direct materials used in production, we subtract the ending balance from the total available direct materials: $26,000 - $3,000 = $23,000. However, $12,000 of the direct materials were transferred to the work in process account as indirect materials. Therefore, the cost of direct materials used in production is $23,000 - $12,000 = $11,000.

Cardsheet Company the Following Partially Completed T Accounts Summarize the Transactions