Compton Inc.has a beginning materials inventory balance for May of $27,500, and an ending balance for May of $28,750.Materials used during the month were $128,900.As a result, what is the cost of materials purchased during the month?
A)$101,400.
B)$127,650.
C)$130,150.
D)$157,650.
E)None of the answers is correct.

Question

Quizplus · Accepted Answer

The cost of materials purchased during the month can be calculated using the following formula:

Cost of materials purchased = Ending inventory + Materials used during the month - Beginning inventory

Substituting the given values:

Cost of materials purchased = $28,750 + $128,900 - $27,500 = $130,150

Therefore, the answer is C.