The following information is available for the first month of operations for Crawford, Inc.: $\begin{array}{|l|l|}
\hline\$ 570,000 & \text { Sales } \
\hline 210,000 & \text { Gross profit } \
\hline 20,000 & \text { Indirect labor } \
\hline 9,000 & \text { Indirect materials } \
\hline 7,500 & \text { Other factory overhead } \
\hline 250,000 & \text { Materials purchased } \
\hline 420,000 & \text { Total manufacturing costs } \
\hline 10,000 & \text { Materials irventory, end of period } \
\hline
\end{array}$
Refer to the information provided for Crawford Inc. Calculate direct materials cost used in production.

Question

The following information is available for the first month of operations for Crawford, Inc.: $\begin{array}{|l|l|}
\hline\$ 570,000 & \text { Sales } \
\hline 210,000 & \text { Gross profit } \
\hline 20,000 & \text { Indirect labor } \
\hline 9,000 & \text { Indirect materials } \
\hline 7,500 & \text { Other factory overhead } \
\hline 250,000 & \text { Materials purchased } \
\hline 420,000 & \text { Total manufacturing costs } \
\hline 10,000 & \text { Materials irventory, end of period } \
\hline
\end{array}$
 Refer to the information provided for Crawford Inc. Calculate direct materials cost used in production.

Quizplus · Accepted Answer

Direct materials cost used in production is calculated as: Materials purchased ($250,000) - Indirect materials ($9,000) - Ending materials inventory ($10,000) = $231,000.

The Following Information Is Available for the First Month of Operations