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11 December, 06:58

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

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  1. 11 December, 08:30
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    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
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