Compute the amount of raw materials used during August if $25,000 of raw materials were purchased during the month and the inventories were as follows:
A)$16,000
B)$19,000
C)$23,000
D)$27,000

Question

Compute the amount of raw materials used during August if $25,000 of raw materials were purchased during the month and the inventories were as follows: 
A)$16,000 
B)$19,000 
C)$23,000 
D)$27,000

Quizplus · Accepted Answer

The amount of raw materials used can be calculated using the formula:
Raw materials used = Beginning inventory + Purchases – Ending inventory
Plugging in the numbers given in the question, we get:
Raw materials used = $8,000 + $25,000 - $6,000 = $27,000
Therefore, the answer is D.

Compute the Amount of Raw Materials Used During August If