Randy's Garden Supply Manufacturing Company had $105,000 in Raw Materials Inventory at the beginning of the month.During the month Randy used $920,000 and had $120,000 remaining in inventory at the end of the month.How much inventory did Randy purchase during the month?

Question

Quizplus · Accepted Answer

Randy started with $105,000 in inventory, used $920,000 during the month, and ended with $120,000. To find out how much was purchased, we calculate the total materials available before usage (beginning inventory + purchases) and set it equal to the sum of materials used and ending inventory. So, $105,000 + Purchases = $920,000 + $120,000. Solving for Purchases gives us $935,000.

Randy's Garden Supply Manufacturing Company Had $105,000 in Raw Materials