Which statement describes direct materials in a manufacturing setting?
A)Direct materials are used to determine total inventoriable product costs.
B)Direct materials are used to determine total manufacturing overhead.
C)Direct materials cannot be separately and conveniently traced.
D)Direct materials do not become part of the finished product.

Question

Quizplus · Accepted Answer

Direct materials are one of the three main components of product costs (along with direct labor and manufacturing overhead). They are the raw materials that are physically incorporated into the finished product and can be easily traced and measured in terms of cost. They are used to calculate the total inventoriable product cost, which includes the cost of all direct materials used in production.

Which Statement Describes Direct Materials in a Manufacturing Setting