EX 18-11 Cost of direct materials used in production for a manufacturing company

Dewald Manufacturing Company reported the following materials data for the month ending April 30, 2014:

Materials purchased $920,000
Materials inventory, April 1 310,000
Materials inventory, April 30 280,000

Determine the cost of direct materials used in production by Dewald during the month ended April 30, 2014.


Answer:

Materials inventory, April 1, 2014……………………………………………………… $ 310,000
Add materials purchased during April……………………………………………… 920,000
Cost of materials available for use…………………………………………………… $1,230,000
Less materials inventory, April 30, 2014……………………………………………… 280,000
Cost of direct materials used in production…………………………………… $ 950,000