Information from the records of Chrome Ponies Enterprises for June 2014 is as fo
ID: 2403430 • Letter: I
Question
Information from the records of Chrome Ponies Enterprises for June 2014 is as follows:
Sales $41,000
Direct labor 10,000
Selling and administrative expenses 7,000
Direct materials purchases 5,000
Factory overhead 11,500
Inventories
June 1, 2014 June 30, 2014
Direct materials $1,200 $1,400
Work in process 2,500 2,800
Finished goods 2,300 1,900
Refer to Figure 2-15. What was the cost of materials used in production?
Explanation / Answer
Cost of materials used in production = 4,800
Cost of materials used in production = Opening balance of direct materials + purchase of materials - ending balance of materias
= 1200 + 5000 - 1400
= 4800