Question
Coronado Industries has beginning and ending raw materials inventories of $116000 and $140000, respectively. If direct...
Coronado Industries has beginning and ending raw materials inventories of $116000 and $140000, respectively. If direct materials used were $690000, what was the cost of raw materials purchased? $666000. $690000. $720000. $714000.
Answers
Beginning raw materials inventory = $116,000
Ending raw materials inventory = $140,000
Direct materials used = $690,000
Cost of raw materials purchased = ?
Direct materials used = Beginning raw materials inventory + Cost of raw materials purchased - Ending raw materials inventory
690,000 = 116,000+ Cost of raw materials purchased - 140,000
Cost of raw materials purchased = $714,000
Fourth option is correct option.
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