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Okaboji Manufacturing Company reported the following materials data for the month ending November 30: Materials purchased $176,700 Materials inventory, November 1 55,800 Materials inventory, November 30 46,500 Determine the cost of direct materials used in production by Okaboji during the month ended November 30.

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Answer:

Direct material used= $186,000

Explanation:

Giving the following information:

Materials purchased= 176,700

Materials inventory, November 1= 55,800

Materials inventory, November 30= 46,500

To calculate the direct material used, we need to use the following formula:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 55,800 + 176,700 - 46,500

Direct material used= $186,000