Gammil Company has beginning and ending raw materials inventories of $96000 and $120000 respectively. If direct materials used were $490000 what was the cost of raw materials purchased?
A) $490000.
B) $520000.
C) $466000.
D) $514000.

Question

Quizplus · Accepted Answer

Cost of Raw Materials Purchased = Ending Raw Materials Inventory - Beginning Raw Materials Inventory + Direct Materials Used
= $120,000 - $96,000 + $490,000
= $514,000.

Therefore, the correct answer is D: $514,000.

Gammil Company Has Beginning and Ending Raw Materials Inventories of $96000