Cost of Direct Materials Used in Production for a Manufacturing Company Rextacular Manufacturing Company reported the following materials data for the month ending June 30, 2016:

Materials purchased $828,000

Materials inventory, June 1 279,000

Materials inventory, June 30 252,000

Determine the cost of direct materials used in production by Rextacular during the month ended June 30, 2016.

$855,000

Explanation:

The Raw Materials T - Account can be used to determine the cost of direct materials used in production using the missing balance technique as follows :

Raw Materials T - Account

Debit :

Beginning Balance                                               $279,000

Purchases                                                             $828,000

Total                                                                     $1,107,000

Credit :

Ending Balance                                                    $252,000

Transferred to Production (Balancing figure)     $855,000

Total                                                                     $1,107,000

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