The Outdoor Manufacturing Company produces sporting equipment. The company maintains a single raw materials inventory account for both direct and indirect materials. The following information came from the factory ledger accounts for December:
|
Raw Materials, December 1 |
$ 45,500 |
|
Work in Process, December 1 |
125,000 |
|
Finished Goods, December 1 |
175,000 |
|
Raw materials purchases (during December) |
623,000 |
|
Direct labor |
435,000 |
|
Repairs and maintenance |
37,200 |
|
Indirect materials |
16,700 |
|
Utilities |
63,200 |
|
Indirect labor |
38,200 |
|
Supervisors’ salaries |
18,300 |
|
Raw Materials, December 31 |
43,600 |
|
Work in Process, December 31 |
135,000 |
|
Finished Goods, December 31 |
150,000 |
Compute the cost of direct materials used during the month of December.