SW Industries has the following information regarding its Raw Materials Inventory account: What is the cost of materials purchased by SW Industries during the month?

Question

SW Industries has the following information regarding its Raw Materials Inventory account:  What is the cost of materials purchased by SW Industries during the month?

Quizplus · Accepted Answer

The cost of materials purchased can be calculated by taking the ending balance of Raw Materials Inventory and subtracting the beginning balance, then adding any direct purchases made during the month. In this case, the beginning balance is not provided, but the ending balance is $370,300. Therefore, the cost of materials purchased must be the ending balance minus any direct purchases made during the month. Choice B is the only option that is less than the ending balance and could feasibly represent the cost of direct purchases.

SW Industries Has the Following Information Regarding Its Raw Materials