Kyle, Inc. has collected the following data on one of its products. The actual cost of the direct materials used is:
A) $133,750.
B) $150,000.
C) $106,250.
D) $158,750.
E) $120,000.

Question

Quizplus · Accepted Answer

The actual cost of direct materials used is obtained by adding the beginning inventory of direct materials to the direct materials purchased during the period and then subtracting the ending inventory of direct materials. Based on the information provided, the calculation would be:
Beginning Inventory of Direct Materials = $10,000
Direct Materials Purchased = $150,000
Ending Inventory of Direct Materials = $26,250
Actual Cost of Direct Materials Used = $10,000 + $150,000 - $26,250 = $133,750. Therefore, the correct choice is A.

Kyle, Inc Has Collected the Following Data on One of Its