Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively. If direct materials used were $260,000, what was the cost of raw materials purchased?
A) $260,000.
B) $280,000.
C) $244,000.
D) $276,000.

Question

Quizplus · Accepted Answer

Using the formula:

Purchased materials = Ending Inventory + Direct Materials Used - Beginning Inventory

We can plug in the given values:

Purchased materials = $80,000 + $260,000 - $64,000
Purchased materials = $276,000

Therefore, the cost of raw materials purchased was $276,000. The correct answer is choice D.

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