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.

$19,000

Explanation:

The computation of the direct material used is shown below:

= Beginning raw materials inventory + Purchases of direct materials + import duties + freight-in charges - ending raw material inventory

= $3,900 + $15,600 + $900 + $600 - $2,000

= $19,000

We ignored the freight out charges for the direct material used computation

say it in english maybe we can

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;