In: Accounting
Okaboji Manufacturing Company reported the following materials data for the month ending November 30:
Materials purchased $178,600
Materials inventory, Novermber 1 $56,400
Materials inventory, November 30 $47,000
Determine the cost of direct materials used in production by Okaboji during the month ended November 30.
cost of direct materials =( materials purchased + opening inventory-
closing inventory )
given that :
materials purchased = $178,600
opening inventory = $56,400
closing inventory = $47,000
cost of direct materials = ($178,600+$56,400-$47,000)
= $188,000
the cost of direct materials used in production by Okaboji during the month ended Nov30 = $188,000