ABC Company uses a Materials Inventory account to record both direct and indirect materials.During the month of April,the company has the following cost information:
The ending materials inventory cost is:

Question

ABC Company uses a Materials Inventory account to record both direct and indirect materials.During the month of April,the company has the following cost information: 
The ending materials inventory cost is:

Quizplus · Accepted Answer

The ending materials inventory cost can be calculated by adding the beginning inventory, purchases, and direct materials used, then subtracting the ending inventory. Using the data given in the table, the ending inventory cost would be:
Beginning inventory cost = $30,000
Purchases cost = $300,000
Direct materials used = $270,000
Ending inventory cost = $20,000
Therefore, the ending materials inventory cost is $20,000, which is option B.

ABC Company Uses a Materials Inventory Account to Record Both