Direct materials used reflects
A)materials used to package the finished product for distribution/shipping to the customers.
B)all materials used throughout the company including but not limited to office materials, shipping materials, all raw materials, etc.
C)materials directly traced to the finished product that are requisitioned into the factory to be used in production.
D)materials acquired for use in production but that have not been requisitioned by the production supervisor yet.

Question

Quizplus · Accepted Answer

Direct materials used are materials that are directly traced to the finished product and are used in production. These are typically raw materials that are requisitioned into the factory. Option A is incorrect because packaging materials would be considered indirect materials. Option B is incorrect because it includes all materials used by the company, including indirect materials. Option D is incorrect because materials acquired but not yet requisitioned would not be considered as direct materials used.

Direct Materials Used Reflects