Answer:
The cost of direct materials used for the current year is $132,800
Explanation:
For computing the cost of direct material used, we have to use the formula which is shown below:
= Opening balance of raw material inventory + Purchase of raw material - ending balance of raw material inventory
where,
Opening balance of raw material inventory is $8,700
Purchase of raw material is $133,000
And, the ending balance of raw material inventory is $8,900
= $8,700 + $133,000 - $8,900
= $132,800
The remaining information which is given is irrelevant. Therefore, it is ignored.
Hence, the cost of direct materials used for the current year is $132,800
