Question

Micker Boots produces cowboy boots, its Raw Materials Inventory account contains only direct materials. If the beginning balance in Raw Materials Inventory is $6300, the ending balance is $3300, and $55000 was the amount transferred to Work in Process Inventory, what is the amount of materials purchased during the period?

Answer 1

Purchases= $52,000

Step-by-step explanation:

Giving the following information:

Beginning inventory= $6,300

Ending balance= $3,300

Production= $55,000

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

Purchases= production + desired ending inventory - beginning inventory

Purchases= 55,000 + 3,300 - 6,300

Purchases= $52,000