1. Direct materials purchases totaled $583,000. Bagby Corp tracks its direct materials separately from its indirect materials Purchases were made on account. 2. $132,000 of indirect materials were used in production. Bagby uses a separate Supplies Inventory account for indirect materials (To record purchase of direct materials) 132000 Supplies Inventory 132000 (To record use of indirect materials in production) Work in Process Inventory 569000 Direct Materials Inventory 569000