Asked by Kimmy Mendivel on May 05, 2024
Verified
The beginning balance of the Raw Materials inventory account for May was $27,500. The ending balance for May was $28,750 and $128,900 of raw materials were used during the month. The materials purchased during the month cost:
A) $130,150.
B) $157,650.
C) $127,650.
D) $131,300.
Materials Purchased
The total cost or quantity of raw materials bought by a company for use in production processes.
Raw Materials Inventory
Raw materials inventory refers to the stock of raw materials on hand at any given time that are made available for use in the production process.
- Assess the role of direct and indirect costs in determining product prices and in managing cost efficiently.
Verified Answer
FJ
Frans JessicaMay 08, 2024
Final Answer :
A
Explanation :
To find the cost of materials purchased during the month, we use the formula: Beginning Inventory + Purchases - Ending Inventory = Materials Used. Plugging in the given values: $27,500 + Purchases - $28,750 = $128,900. Solving for Purchases gives us $130,150.
Learning Objectives
- Assess the role of direct and indirect costs in determining product prices and in managing cost efficiently.