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