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Emarson & Slater Inc. had materials inventory of $13,200 on July 1. The materials inventory on July 31 was $16,500, and the cost of direct materials used in production during the month was $22,000. What was the cost of materials purchased during the month?a. $25,300 b. $17,000 c. $35,000 d. $20,000

Respuesta :

Answer:

a. $ 25,300

Explanation:

The amount of purchases can be determined by taking the cost of direct materials used in production as adjusted by the inventory movement

so the total purchases is:

Purchases =  Closing Inventory + Material used - Opening inventory

$ 16,500 + $ 22,000 - $ 13,200  = $ 25,300

This can also be explained by the change in inventory values i.e $ 3,300 plus the materials used in production $ 22,000

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