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Work in process inventory, beginning $18,000 Work in process inventory, ending 25,000 Direct labor costs incurred 5,000 Cost of goods manufactured 9,000 Factory overhead 7,000 Determine the amount of direct materials used. $

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Answer:

Direct materials used = $4000

Explanation:

We know,

Direct materials used = (Ending working process + Cost of goods manufactured - beginning work in process) - (Factory overhead + Direct labor costs)

Given,

Ending work in process = $25,000

Cost of goods manufactured = $9,000

beginning work in process = $18,000

Factory overhead = $7,000

Direct labor costs = $5,000

Putting the values into the formula, we can get

Direct materials used = (Ending working process + Cost of goods manufactured - beginning work in process) - (Factory overhead + Direct labor costs)

Or, Direct materials used = ($25,000 + $9,000 - $18,000) - ($7,000 + $5,000)

Or, Direct materials used = $16,000 - $12,000

Or, Direct materials used = $4000

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