[Anonymous]

Becker Question –

Under the Operations Management: Cost Measurement Methods and Techniques, I am totally lost on the Madtack Company’s questions.

How do you determine the cost of material used?

I’m assuming the valuation is = beginning balance of direct materials available + purchases – ending balance + returns and allowance.

I’m not sure and any assistance is kindly appreciated.

[Mrsterrell]

You have to subtract “Returns & Allowance” and add “Transportation In” if it is included in the question.

[Anonymous]

@Mrsterrell Thanks for your reply and your help. It's much appreciated.

[Author]

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