Question

Gaynor Company started March with $35,000 in direct materials inventory. During the month, direct materials in the amount of $145,000 were purchased and $22,000 was in the ending direct materials inventory at the end of March. What was the amount of direct material used in production in March?

Answer 1

Answer:

$ 158,000

Explanation:

      $  

  35,000   Beggining Balance (BB ) +

 145,000 Purchases                   (P)   +

-158,000 Consumption                   (C )  -

   22,000 Ending balance       (EB ) =

Formulas:  

EB= BB + P - C  

C=   BB + P - EB  

Material used ( Consumption ) = Material in Stock + Material purchased in the period  - Material remaining at the end of period