Materials inventory, March 1, 2019
Materials inventory, March 31, 2019
|Cost of direct materials during March||
Cost of Direct Material Used = Opening Inventory + Purchases of Inventory - Closing Inventory
Purchases of Inventory = Purchases from Reed Company + Purchases from Frye Company
Purchases of Inventory = $ 260,000 + $ 92,000
Purchases of Inventory = $ 352,000
Cost of Direct Material Used = $ 76,000 + $ 352,000 - $ 70,000
Cost of Direct Material Used = $ 358,000.
Note : Payment made to reed company is not the purchases.
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