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Direct Materials Available: 1,100,000 Less: Direct Materials at 12/31/2022: 86,000 Direct Materials Used = 1,100,000 - 86,000 = 1,014,000 Calculate Units Produced: This is given
Direct Materials Available: 1,100,000 Less: Direct Materials at 12/31/2022: 86,000 Direct Materials Used = 1,100,000 - 86,000 = 1,014,000 Calculate Units Produced: This is given as 507,000 units. Calculate Unit Cost for Direct Materials: Cost of Direct Materials Used: 1,014,000 Units Produced: 507,000 Unit Cost for Direct Materials = Cost of Direct Materials Used / Units Produced Unit Cost for Direct Materials = 1,014,000 / 507,000 2.00 The calculation provided in the question is correct. The unit cost for direct materials is indeed approximately $2.00 per unit
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