Costas Company has beginning and ending raw materials inventories of $64000 and $80000 respectively. If direct materials used were $310000 what was the cost of raw materials purchased?
A) $310000.
B) $330000.
C) $294000.
D) $326000.

Question

Quizplus · Accepted Answer

The cost of raw materials purchased can be calculated using the formula: Cost of Raw Materials Purchased = Direct Materials Used + Ending Raw Materials Inventory - Beginning Raw Materials Inventory. Plugging in the given values: $310,000 + $80,000 - $64,000 = $326,000.

Costas Company Has Beginning and Ending Raw Materials Inventories of $64000