Ganz, 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?
A) $17,000
B) $20,000
C) $23,000
D) $35,000

Question

Quizplus · Accepted Answer

To calculate the materials purchased during the month, we can use the formula:

Materials purchased = Materials inventory at the end + Cost of materials used - Materials inventory at the beginning

Substituting the given values:

Materials purchased = $15,000 + $20,000 - $12,000
Materials purchased = $23,000

Therefore, the cost of materials purchased during the month was $23,000, which corresponds to choice C.

Ganz, Inc Had Materials Inventory at July 1 of $12,000