Question

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Company uses the? weighted-average method in its process costing system. The Packaging Department started the month with

290290

units in process that were

8080?%

?complete, received

1 comma 4901,490

units from the Finishing? Department, and had

140140

units in process at the end of the period. All materials are added at the beginning of the? process, and conversion costs are incurred uniformly. The units in process at the end of the month are

1010?%

complete with respect to conversion costs. During the month

1 comma 6401,640

units were completed and transferred out. The department incurred the following? costs:

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Suppose a bakery reports this? information:

Beginning Raw Materials Inventory	$6,000
Ending Raw Materials Inventory	5,000
Beginning Work-in-Process Inventory	2,000
Ending Work-in-Process Inventory	1,000
Beginning Finished Goods Inventory	3,000
Ending Finished Goods Inventory	5,000
Direct Labor	28,000
Purchases of Raw Materials	98,000
Manufacturing Overhead	18,000

What is the cost of direct materials? used?

Answer 1

Ans.	Calculation for Cost of direct material used:
	Direct Material:				Amt.($)
	Beginning Raw material Inventory				$       6,000
	Add: Purchases of Raw Material				98,000
	Raw Material available for use				104,000
	Less: Ending Raw Material Inventory				(5,000)
	Direct Material Used				$     99,000