Sometimes you may know only the total dollar amount of direct materials purchased rather than the actual
A)The total purchases amount
B)Dividing the total purchases amount by the actual number of
C)Both by using the total purchases amount and by dividing the total purchases amount by the actual number of units purchased.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

To calculate the actual cost of direct materials used in production, we need to know how much of the total purchases amount was actually used in production. To find this out, we can divide the total purchases amount by the actual number of materials used. Therefore, we can use both methods - the total purchases amount and dividing it by the actual number of materials used - to calculate the actual cost of direct materials used in production.

Sometimes You May Know Only the Total Dollar Amount of Direct