Raw materials purchased were $17,800 and ending inventory of raw materials was $4,300. If raw materials beginning inventory was 25% of materials used in the process, what was the cost of materials used in production?

Question

Quizplus · Accepted Answer

To find the cost of materials used in production, we first need to determine the beginning inventory. Let X be the cost of materials used. According to the problem, the beginning inventory is 25% of X, so Beginning Inventory = 0.25X. The formula for materials used is: Beginning Inventory + Purchases - Ending Inventory = Materials Used. Substituting the values, we get: 0.25X + $17,800 - $4,300 = X. Solving for X gives us $18,000.

Raw Materials Purchased Were $17,800 and Ending Inventory of Raw