Question

Tektron Industries has Beginning and Ending Raw Materials Inventories of $32,000 and $40,000, respectively. Direct Materials used were $130,000. The cost of Raw Materials Purchased is A :

Answer 1

$138,000

Step-by-step explanation:

The computation of the cost of Raw Materials Purchased is shown below:

= Direct materials used + ending direct material inventory - beginning direct material inventory

= $130,000 + $40,000 - $32,000

= $138,000

Simply we added the ending direct material inventory and deduct the beginning direct material inventory to the direct material used so that the accurate amount can come