Rainier Industries has Raw materials inventory on January 1, 20x8 of $32,500 and Raw materials inventory on December 31, 20x8 of $26,700. If raw materials used during the year were $135,000 what was the amount of raw materials purchased during the year?
A) $129,200.
B) $140,800.
C) $135,000.
D) $146,600.
E) None of the answers is correct.

Question

Quizplus · Accepted Answer

Raw materials purchased = Raw materials used + (Raw materials inventory, January 1 - Raw materials inventory, December 31)= $135,000 + ($32,500 - $26,700)= $135,000 + $5,800= $140,800

Rainier Industries Has Raw Materials Inventory on January 1, 20x8