The direct and indirect material costs and the ending balance will be $60,000, $30,000, and $20,000, respectively.
What is direct and indirect material cost, and ending balance?
Fairfield Company’s raw materials inventory transactions for the most recent month are summarized here:
Beginning raw materials $ 20,000
Purchases of raw materials 90,000
Raw materials issued
Materials requisition 1445 25,000 For Job 101
Materials requisition 1446 35,000 For Job 102
Materials requisition 1447 30,000 Used on multiple jobs
The direct material cost is given as,
Direct raw materials used = Materials requisition 1445 For Job 101 + Materials requisition 1446 For Job 102
Direct raw materials used = $25,000 + $35,000
Direct raw materials used = $60,000
The indirect material cost is given as,
Amount to add to the Manufacturing Overhead account = Indirect materials used = $30,000
The ending balance is given as,
Ending raw materials balance = Beginning raw materials + Purchases of raw materials - Direct raw materials used - Indirect materials used = $20,000 + $90,000 - $60,00 - $30,000 = $20,000
The direct and indirect material costs and the ending balance will be $60,000, $30,000, and $20,000, respectively.
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