Kelita's Kar Kare Kompany had the following cost and inventory data for the month: Costs incurred for the month:
Direct labour $6,900
Indirect labour 1,500
Direct materials purchased 4,500
Factory utilities 2,200
Factory amortization 3,000
Factory supervision 1,200
Inventories:
Ending Beginning
Direct materials $1,500 $1,800
Work in process 4,500 4,050
Finished goods 6,000 5,250
What were the direct materials available for the month?

Question

Quizplus · Accepted Answer

Direct materials available for the month can be calculated by adding beginning inventory of direct materials to direct materials purchased and then subtracting ending inventory of direct materials. 
Direct materials available = Beginning inventory + Direct materials purchased - Ending inventory 
Direct materials available = $1,800 + $4,500 - $1,500 
Direct materials available = $6,300

Kelita's Kar Kare Kompany Had the Following Cost and Inventory