Question

Direct Materials Used in Production Slapshot Company makes ice hockey sticks. On June 1, Slapshot had $42,000 of materials in inventory. During the month of June, the company purchased $127,000 of materials. On June 30, materials inventory equaled $51,000. Required: Calculate the direct materials used in production for the month of June.

Answer 1

Answer:

$118,000

Explanation:

The formula and the estimation of the direct material used is shown below:

Direct material used = Starting raw material balance + purchase made during the year- ending raw material balance

= $42,000 + $127,000 - $51,000

= $118,000

Adding the purchased amount and deducting the ending raw material balance to the beginning raw material balance for computing the direct material used