You are a new accounting intern at Allterrain Bikes. Your boss gives you the following information and asks you to compute the cost of direct materials used (assume that the company s raw materials inventory contains only direct materials). Purchases of direct materials............................................................................... $15,600 Import duties........................................................................................................... $ 900 Freight-in................................................................................................................. $ 600 Freight-out.............................................................................................................. $ 500 Ending raw materials inventory............................................................................ $ 2,000 Beginning raw materials inventory....................................................................... $ 3,900
Compute direct materials used.