Talcum Inc. had materials inventory at July 1 of $12,000. The materials inventory at July 31 was $15,000 and the cost of direct materials used in production was $20,000. What was the cost of materials purchased during the month?

Question

Quizplus · Accepted Answer

The cost of materials purchased is calculated by adding the cost of direct materials used in production to the ending inventory and then subtracting the beginning inventory: $20,000 + $15,000 - $12,000 = $23,000.