The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: The direct materials cost was:
A) $8,400
B) $5,900
C) $3,800
D) $4,900

Question

The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year:       The direct materials cost was:
A) $8,400 
B) $5,900 
C) $3,800 
D) $4,900

Quizplus · Accepted Answer

The direct materials cost can be calculated by adding the beginning balance of raw materials inventory with the purchases of raw materials during the year and subtracting the ending balance of raw materials inventory. Based on the T-accounts, the direct materials cost is calculated as follows:
Beginning balance of raw materials inventory + Purchases - Ending balance of raw materials inventory
= $1,800 + $5,900 - $2,700
= $5,900

The Following Partially Completed T-Accounts Summarize Transactions for Faaberg Corporation