Calculate direct materials used
You are a new accounting intern at Sunny’s Bikes. Your boss gives you the following information and asks you to compute the cost of direct materials used (assume that the company’s raw materials inventory contains only direct materials.)
|
Purchases of direct materials |
$ 16,000 |
|
Import duties |
1,000 |
|
Freight in |
200 |
|
Freight out |
1,000 |
|
Ending raw materials inventory |
1,500 |
|
Beginning raw materials inventory |
4,000 |