Using the following information, compute the direct materials used. Raw materials inventory, January 1 $ 20000 Raw materials inventory, December 31 40000 Work in process, January 1 18000 Work in process, December 31 12000 Finished goods, January 1 40000 Finished goods, December 31 32000 Raw materials purchases 1800000 Direct labor 760000 Factory utilities 150000 Indirect labor 50000 Factory depreciation 400000 Operating expenses 420000

$1,320,000

Explanation:

According to the scenario, computation of the given data are as follow:-

Purchase of raw material = $1,800,000

Opening stock of raw material = $20,000

Closing stock of raw material = -$3,140,000

Direct Material Used = Purchase of Raw Material + Opening Stock of Raw Material - Closing Stock of Raw Material

= $1,800,000 + $20,000 - $3,140,000

= $1,320,000

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order:

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