seved Use the following information to compute the cost of direct materials used for the current year. Assume the raw materials inventory account is used only for direct materials. (Assume no indirect materials.) January 1 December 31 $ Inventories Raw materials inventory Work in process inventory Finished goods inventory Activity during current year Materials purchased Direct labor Factory overhead $ 7.400 13.800 10.700 8.100 11.600 6.800 $138.000 104.400 41. 100 Cost of Direct Material Used is Computed as: Raw materials inventory, beginning s Add: Raw materials purchased Raw materials available for use Less: Raw materials inventory, ending Direct materials used 7.400 138,000 145,400 $ 145,400