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BARSIC [14]
3 years ago
13

From the list below, select the items that are classified as a materials activity. Select the correct answers. a.Raw materials u

sed b.Raw materials beginning inventory c.Raw materials purchases d.Work in process beginning inventory e.Goods manufactured Direct labor used f.Factor overhead used
Business
1 answer:
USPshnik [31]3 years ago
6 0

Answer:

A) Raw materials used

B) Raw materials beginning inventory

C) Raw materials purchases

Explanation:

When we are calculating the cost of goods sold, we must calculate total direct   materials used + total direct labor + overhead overhead costs applied.

To calculate how much direct (raw and intermediate) materials are used, we start with our beginning inventory of (raw and intermediate) materials + purchases of (raw and intermediate) materials - ending inventory of raw materials - indirect materials used.

Some industries only calculate raw materials used, but others might include intermediate components in the equation.

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