Question

Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: Wages Machine operators $ 300,000 Selling and Administrative personnel $ 75,000 Materials used Lubricant for oiling machinery $ 25,000 Cocoa, sugar, and other raw materials $ 225,000 Packaging materials $ 190,000 Randall's direct materials amounted to:

Answer 1

$225,000 is the direct material cost

Step-by-step explanation:

Direct cost is the cost of materials used in the production that is traceable to finished product such the flour used in making a loaf of bread,the cost of the flour is a direct material cost as the flour is traceable to the finished product-bread.

In this instance, the cocoa ,sugar and other raw materials are easily traced to the finished product- chocolate bar,hence the cost of cocoa,sugar and other materials,$225,000 is the direct material cost

Answer 2

$225,000

Step-by-step explanation:

Direct materials:

Cocoa, sugar, and other raw materials $225,000

Therefore Randall's direct materials amounted to: $225,000 because the Direct materials costs include the costs of materials that can be easily and conveniently traced to products, such as the $225,000 of cocoa, sugar, and other raw materials.

While The lubricant for oiling machinery in the amount of $25,000 and the packaging materials in the amount of $190,000 would be classified as indirect materials because they are not easily and conveniently traced to products.