Question

Beginning raw materials inventory $30,000 Materials purchased 65,000 Ending raw materials inventory 40,000 What is the amount of raw materials used? a.$5,000 b.$55,000 c.$30,000 d.$75,000

Answer 1

Answer:

b.$55,000

Explanation:

The formula and the computation of the amount of raw materials used are shown below:

Raw materials used = Beginning balance of raw materials inventory + Raw material purchased – Ending balance of raw materials inventory

= $30,000 + $65,000 - $40,000

= $55,000

We simply added the purchase value of raw material and deduct the ending balance to the opening balance