Question

Computing direct materials used

Tuscany, Inc. has compiled the following data:

Purchases of Direct Materials $ 6,300

Freight In 400

Property Taxes 800

Ending Direct Materials 1,300

Beginning Direct Materials 4,100

Compute the amount of direct materials used.

Short answer

The direct material used by the Tuscany Inc is $9,500

Step-by-step solution

Definition of Direct Material

The direct material is defined as the cost incurred by the business on the raw material which is used in the production process directly.

Computation of direct material

Computation of Direct Material Used
	Amount ($)
Beginning Direct Materials	$4,100
Add: Purchase of direct materials	$6,300
Add: Freight in	$400
Direct Materials Available	$10,800
Less: Ending Direct Material	-$1,300
Direct Material used	$9,500