Okoboji Manufacturing Company reported the following materials data for the month ending November...

Question:

Okoboji Manufacturing Company reported the following materials data for the month ending November 30:

Materials purchased $213,900
Materials inventory, November 1 67,600
Materials inventory, November 30 56,300

Determine the cost of direct materials used in production by Okoboji during the month ended November 30.

Answer and Explanation:

Answer:

The cost of direct materials used in production by Okoboji during the month ended November 30 is $225,200.

Explanation:

Okoboji Manufacturing Company reported that:

  • Materials purchased = $213,900
  • Materials inventory, November 1 (Beginning) = $67,600
  • Materials inventory, November 30 (Ending) = $56,300

Formula:

Direct materials used in production = Beginning Materials inventory + Materials purchased - Ending Materials inventory

Direct materials used in production = $67,600 + $213,900 - $56,300

Direct materials used in production = $225,200


Learn more about this topic:

Product Costs in Accounting: Definition & Examples

from Financial Accounting: Tutoring Solution

Chapter 2 / Lesson 13
5.8K

Related to this Question

Explore our homework questions and answer library