Randall Company manufactures chocolate bars. The following were among Randall's 2013 manufacturing costs: Wages
Machine operators $ \quad \$ 300,000 $
Selling and administrative personnel $ \quad \$ 75,000 $

Materials used
Lubricant for oiling machinery $ \quad \$ 25,000 $
Cocoa, sugar, and other raw materials $ \quad \$ 225.000 $
Packaging materials$\quad \quad \quad \$ 190,000 $ Randall's 2013 direct materials amounted to:
A) $25,000
B) $225,000
C) $250,000
D) $475,000

Question

Randall Company manufactures chocolate bars. The following were among Randall's 2013 manufacturing costs: Wages
Machine operators $ \quad \$ 300,000 $
Selling and administrative personnel $ \quad \$ 75,000 $

Materials used
Lubricant for oiling machinery $ \quad \$ 25,000 $
Cocoa, sugar, and other raw materials $ \quad \$ 225.000 $
Packaging materials$\quad \quad \quad  \$ 190,000 $ Randall's 2013 direct materials amounted to:
A) $25,000
B) $225,000
C) $250,000
D) $475,000

Quizplus · Accepted Answer

Direct materials are the raw materials that are directly traceable to the finished product. In this case, cocoa, sugar, and other raw materials amounting to $225,000 are the direct materials used in manufacturing the chocolate bars.

Randall Company Manufactures Chocolate Bars $300,000 \quad \$ 300,000 $300,000 Selling and Administrative Personnel

Randall Company Manufactures Chocolate Bars $\quad \$ 300,000$ Selling and Administrative Personnel