Answer to Question #248698 in Accounting for Yonas mekonnen

Question

Direct material inventory of xyz furniture factory amount birr 124000 at the beginning of one year of july 1200 purchase of birr 440000 and freight cost birr 1600 is made during one year and the amount of direct materials inventory at the end of one year is birr 117450 show direct material used

Answer 1

Solution:

Direct materials used = Beginning inventory + Purchases – Ending inventory

Direct materials used = 124,000 + 440,000 – 117,450 = 446,550

Direct materials used = Birr 446,550