Parker Company manufactures tables.If raw material used was $80,000 and Raw Material Inventory at the beginning and end of the period,respectively,was $17,000 and $21,000,what was amount of raw material was purchased?
A)$76,000
B)$118,000
C)$84,000
D)$101,000

Question

Quizplus · Accepted Answer

The amount of raw material purchased can be found by subtracting the beginning Raw Material Inventory from the end Raw Material Inventory and adding the cost of raw material used during the period.

Raw material purchased = Ending Raw Material Inventory - Beginning Raw Material Inventory + Raw Material Used

Raw Material Used = $80,000

Beginning Raw Material Inventory = $17,000

Ending Raw Material Inventory = $21,000

Raw material purchased = $21,000 - $17,000 + $80,000 = $84,000

Therefore, the best answer choice is (C) $84,000.

Parker Company Manufactures Tables