FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Direct materials costs are those costs of materials which can be directly be related to manufacturing of Cars.
Here, Tires cost of $21,000 and Frames cost of $23000 is the direct material cost.
Direct materials = Tires + Frames = 21000 + 23000 = $44,000
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