Direct Materials Calculation – Short Answer

Practice Question

Intro to Managerial Accounting
Direct Materials Calculation
Short Answer

Calculate the direct materials cost if each unit requires 3 kg of material at a cost of $10 per kg for 1,000 units.

Answer +
Correct Answer: $30,000
Explanation +

Direct Materials Cost = Units × kg per unit × cost per kg = 1,000 × 3 × $10 = $30,000.

This calculation is essential for budgeting (Page 51).