Question

Marigold Corp. has beginning and ending raw materials inventories of $86000 and $110000, respectively. If direct materials used were $290000, what was the cost of raw materials purchased?a. $310,000.b. $330,000.c. $294,000.d. $326,000.

Answer 1

Answer: $314000

Explanation:

Based on the information given in the question, the cost of raw materials purchased will be calculated thus:

Materials used = Beginning inventory + Purchases - Ending inventory

$290000 = $86000 + Purchases - $110000

Purchases = $290000 + $110000 - $86000

= $314000

The cost of raw materials is $314000.