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

$ 158,000

Step-by-step 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