You are a new accounting intern at Mason 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).
Import duties ................................................................................................... $ 1,300
Beginning raw materials inventory .................................................................. $ 4,700
Ending raw materials inventory ....................................................................... $ 1,200
Freight-in ............................................................................................................ $ 400
Freight-out .......................................................................................................... $ 600
Purchases of direct materials ........................................................................ $ 16,000