Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively.If direct materials used were $290,000, what was the cost of raw materials purchased?
A)$290,000.
B)$310,000.
C)$274,000.
D)$306,000.

Question

Quizplus · Accepted Answer

The cost of raw materials purchased can be calculated using the formula: Beginning Inventory + Purchases - Ending Inventory = Direct Materials Used. Plugging in the numbers: $64,000 + Purchases - $80,000 = $290,000. Solving for Purchases gives $306,000.

Costas Company Has Beginning and Ending Raw Materials Inventories of $64,000