Data for the Cost of Direct Materials for the Month $\begin{array}{llr} \text { Materials inventory, March 1, 2016 } &\$76,000\\ \text { Materials inventory March 31.2016 } &70,000\\\end{array}$

question 199

Essay

Data for the cost of direct materials for the month ended March 31 2016 are as follows: $\begin{array}{llr} \text { Materials inventory, March 1, 2016 } &\$76,000\\ \text { Materials inventory March 31.2016 } &70,000\\\end{array}$
During March the company purchased $260000 of raw materials on account from Reed Company and $92000 of raw materials for cash from Frye Company. In addition $50000 was paid on the Reed account balance.
Instructions
Compute the cost of direct materials used during March.

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Definitions:

Middle East

A transcontinental region centered on Western Asia and Egypt, known for its historical and strategic significance.

Western Europe

A region comprising countries located in the western part of the European continent, often associated with developed economies and democratic governance.

Disposable Income

Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.

APC

Average Propensity to Consume, which measures the fraction of income that households spend on consumption rather than saving.