Selected data concerning the past year's operations of the Motor City Corporation are as follows: The cost of direct materials purchased is
A) $467,500.
B) $460,000.
C) $437,500.
D) $445,000.

Question

Selected data concerning the past year's operations of the Motor City Corporation are as follows:   The cost of direct materials purchased is
A) $467,500. 
B) $460,000. 
C) $437,500. 
D) $445,000.

Quizplus · Accepted Answer

Direct materials purchased = Opening raw materials inventory + Purchases - Ending raw materials inventory
= $150,000 + $470,000 - $160,000
= $460,000

Selected Data Concerning the Past Year's Operations of the Motor