Question

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending Raw materials inventory$547,000 $610,000 The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to: Multiple Choice $955,000. $892,000. $1,565,000. $408,000.

Answer 1

Answer:

Purchases= $408,000

Explanation:

Giving the following information:

Beginning Ending Raw materials inventory$547,000 $610,000

The raw materials used in manufacturing during the year totaled $1,018,000

To calculate the direct material purchased, we need to use the following formula:

Purchases= direct material used in production - ending inventory

Purchases= 1,018,000 - 610,000

Purchases= $408,000