Question

To calculate direct materials on the schedule of cost of goods manufactured, add purchases to beginning raw materials inventory and subtract ______.

Answer 1

The method used to calculate direct materials on the schedule of cost of goods manufactured is this: add purchases to beginning raw materials inventory and subtract Cost of the ending raw materials.

How to calculate direct materials

The formula used to calculate direct materials on the schedule of cost of goods manufactured is this: Beginning raw materials + Purchases - Cost of the ending raw materials.

This figure is important because it can be used to calculate the total manufacturing cost incurred during production.

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