Question

EA4.

LO 4.3Marzoni’s records show raw materials inventory had a beginning balance of $200 and an ending balance of $300. If the cost of materials used during the month was $900, what were the purchases made during the month?

Answer 1

$1,000

Step-by-step explanation:

As we know that

Cost of material used = Beginning balance of inventory + purchase made during the month - ending balance of inventory

$900 = $200 + purchase made during the month - $300

$900 = -$100 + purchase made during the month

So, the purchase made during the month would be

= $900 + $100

= $1,000

We simply added the purchase to the beginning inventory and deduct the ending inventory