Answer:
Direct material= $51,000
Explanation:
Giving the following information:
Beginning inventory= $20,000
Ending inventory= $27,000.
Raw materials purchases during the month totaled $63,000.
$3,000 consisted of raw materials classified as indirect materials.
First, we need to calculate the total raw material used in production:
Raw material used= beginning inventory + purchases - ending inventory
Raw material used= 20,000 + 63,000 - 27,000= 54,000
Now, the direct material used:
Direct material= 54,000 - 3,000= $51,000
