Question

.A manufacturing business has purchases of raw materials of $4,500, closing inventory of $1,400 and opening inventory of $800. What is the cost of raw materials used in production?

Answer 1

Cost of raw materials used = $5,100

Step-by-step explanation:

Given:

Purchases of raw materials = $4,500

Closing inventory = $1,400

Opening inventory = $800

Find:

Cost of raw materials used

Computation:

Cost of raw materials used = Opening inventory + Purchases of raw materials - Closing inventory

Cost of raw materials used = 1,400 + 4,500 - 800

Cost of raw materials used = $5,100