Current information for the Healey Company follows: All raw materials used were traceable to specific units of product.
-Healey Company's direct materials used for the year is:
A)$58,600.
B)$60,000.
C)$75,200.
D)$76,600.
E)$61,400.

Question

Current information for the Healey Company follows: All raw materials used were traceable to specific units of product.
-Healey Company's direct materials used for the year is:
A)$58,600. 
B)$60,000. 
C)$75,200. 
D)$76,600. 
E)$61,400.

Quizplus · Accepted Answer

Direct materials used is calculated as beginning direct materials plus purchases minus ending direct materials. If the beginning direct materials were $20,000, purchases during the year were $50,000, and the ending direct materials were $11,400, then the calculation is $20,000 + $50,000 - $11,400 = $58,600.

Current Information for the Healey Company Follows: All Raw Materials