Raw materials purchased during the month were $66,000. During that same period, $95,000 was used and ending inventory was $35,000. The beginning raw material inventory balance must have been $60,000.

Question

Quizplus · Accepted Answer

To find the beginning inventory, we can use the formula: Beginning Inventory + Purchases - Materials Used = Ending Inventory. Plugging in the given numbers: Beginning Inventory + $66,000 - $95,000 = $35,000. Solving for Beginning Inventory gives us $64,000, not $60,000.

Raw Materials Purchased During the Month Were $66,000