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XYZ Company provided the following inventory information for 2021 : January 1 December 31 Direct materials 19 , 000 14 , 000 Work in process
XYZ Company provided the following inventory information for 2021: January 1 December 31 Direct materials 19,000 14,000 Work in process 28,000 39,000 Finished goods 51,000 76,000 The following additional information was available for 2021: Advertising ........................................$ 61,000 CEO Salary ......................................... 140,000 Cost of goods sold (unadjusted) .................... 294,000 Depreciation on copier in the sales office ......... 19,000 Direct labor .......................................98,000 Indirect materials ................................. 23,000 Prime costs ........................................ 228,000 Production supervisor's salary ..................... 41,000 Property tax on the factory building ............... 18,000 Sales commissions .................................. 47,000 Utilities on the factory ........................... 24,000 Calculate the direct materials purchased by XYZ Company in 2021.
Since DM+DL= Prime Costs and PC=228,000 and the DL= 98,000
I subtracted (228,000-98,000) to get $130,000 as the DM Purchased
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