Practice of Direct Material Consumed Activity (1)

Calculation of Direct Material Consumed

Raw Material Opening Stock ZZZZZ
Add Raw Material Purchased ZZZZZ
Add transportation/Freight In ZZZZZ
Total Available for Use ZZZZZ
Less Raw Material Closing Stock (ZZZZZ)
Direct Material Consumed ZZZZZ
Note: You have to make calculations for every item of material used in manufacturing of a
product.
Question# 1 Avery Corporation’s northwestern factory provided the following information for
the last calendar year:
Beginning Inventory Ending Inventory
Direct Materials 50,800 21,500
During the year, Direct materials purchases amounted to 150,000.
Required: Calculate total cost of direct materials used in production

Question# 2 Beckman’s corporation provided the following information for the last calendar
year:
Beginning Inventory Ending Inventory
Direct Materials 70,200 36,800
During the year, Direct materials purchases amounted to 320,000.
Required: Calculate total cost of direct materials used in production

Question# 3 Thomson company provided the following information for the last calendar year:
At the beginning of October , the following information was provided by their accountant.
Direct Materials 48,550
Work in process inventory 10,000
During October Direct Materials purchases were 70,000, Transportation in 12,000 and
Freight out was 3600. The inventories at the end of the month were: Direct Materials
15,900.
Required: Calculate total cost of direct materials used in production.

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Question# 4 A manufacturing firm has provided the following information from its accounting
records for the last calendar year:
Purchases of direct materials 130,300
Freight-in on materials 1,500
Materials Handling 22,750
Direct materials inventory, January 1 42,000
Direct materials inventory, December 31 14,000
Required: Calculate total cost of direct materials used in production
Question# 5 A cement factory has provided the following information from its accounting
records for the last calendar year:
Purchases of direct materials 150,300
Transportation-in 3500
Freight-in on materials 1,000
Materials Handling 27,750
Direct materials inventory, January 1 46,000
Direct materials inventory, December 31 18,000
Required: Calculate total cost of direct materials used in production

1. Prime Cost
Direct Material Consumed ZZZZZ
Add Direct Labour ZZZZZ
Prime Cost ZZZZZ
2. Conversion Cost
Add Direct Labour ZZZZZ
Add Factory Overheads ZZZZZ
Conversion Cost ZZZZZ
3. Total Factory Cost/ Total Manufacturing Cost
Direct Material Consumed ZZZZZ
Add Direct Labour ZZZZZ
Add Factory Overheads ZZZZZ
Total Factory Cost/ Total Manufacturing Cost ZZZZZ

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Question# 6: Following is the cost to produce 200 cups of Adnan Ceramics Limited. The
production costs include the following:
Material Used 70,000
Direct Labor 50,000
Factory Overhead 45,000
Required:
1. Prime Cost.
2. Conversion Cost.
3. Total Manufacturing Cost.

Question# 7: Following is the cost to produce 500 cups of Adnan Ceramics Limited. The
production costs include the following. The company wishes a bid price consisting of a markup
of 40% of its total production costs.
Material Used 90,000
Direct Labor 70,000
Factory Overhead 55,000
Required:
1. Prime Cost.
2. Conversion Cost.
3. Cost to produce 500 cups.
4. Bid Price.

Question # 8: Calculate Prime Cost from the following

Opening Stock of raw materials 3,800
Purchases 60,000
Closing Stock of raw materials 5,000
Direct Labor Cost 42,000
Carriage Inwards 6,000
Carriage Outward 12,000
Factory Overhead 6,000
Required:

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 1. Direct Material Consumed.
2. Prime Cost.
3. Conversion Cost.
4. Total Manufacturing Cost.

Question # 9: Calculate Prime Cost, conversion cost, Total manufacturing cost from the
following
Opening Stock of raw materials 2,800
Purchases 40,000
Closing Stock of raw materials 2,000
Direct Labor Cost 32,000
Factory Overhead 9,000
Required:
1. Direct Material Consumed.
2. Prime Cost.
3. Conversion Cost.
4. Total Manufacturing Cost.

Question # 10: Calculate Conversion Cost from the following

Opening Stock of raw materials 3,000

Purchases 55,000
Closing Stock of raw materials 4,000
Direct Labor Cost 40,000
Carriage Inwards 5,000
Carriage Outward 10,000
Factory Overhead 5,000
Required:
1. Direct Material Consumed.
2. Prime Cost.
3. Conversion Cost.
4. Total Manufacturing Cost.