The cost of Direct Materials in a manufacturing account refers to:
A) The direct materials that were purchased for the production in the period
B) The direct materials that were used for production in the period
C) The direct materials that were issued from stores during the period
D) All the materials used in production - including items such as oil or spare parts for machines

Question

Quizplus · Accepted Answer

There may be purchases that were not used.There may be unused issues from stores.Direct Materials is what was actually input into production in the period.Other materials such as oil or spares are not direct costs.

The Cost of Direct Materials in a Manufacturing Account Refers