TB MC Qu. 3-73 The following accounts are from last year's books ... The following accounts are from last year's books of Sharp Manufacturing: Raw Materials Bal 0 (b) 156,400 (a) 170,000 13,600 Work In Process Bal 0 (f) 519,600 (b) 133,200 (c) 170,400 (e) 216,000 0 Finished Goods Bal 0 (g) 472,000 (f) 519,600 47,600 Manufacturing Overhead (b) 23,200 (e) 216,000 (c) 27,200 (d) 158,400 7,200 Cost of Goods Sold (g) 472,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year?

Answer is $ 132,200        

Explanation:        

Direct material used is amount debited to Work in Process account lesser than 154,400.

As the Total material issued is 154,400 which includes the direct and indirect material both.

Used in Production   $   133,200

Explanation:

                   Raw Materials T accounts:

                              DEBIT          CREDIT      

Beginning                   0

Used                                             156,400

Purchasesd          170,000                          

Ending Balance      13,600

Looking at the T-account the debit represent purchases of Raw materials

While the credit is the amount of materials used wheter is indirect or direct

To look for the amount used

we look into:  

WIP     inventory

DEBIT         CREDIT

133,200  <-- DIRECT MATERIALS

Manufacturing Overhead

DEBIT         CREDIT

23,200  <-- INDIRECT MATERIALS