Question

Gammil companyhas beginning and ending raw materials inventories of $96000 and $120000, respectively. if direct materials used were $490000, what was the cost of raw materials purchased? $490000. $466000. $514000. $520000.

Answer 1

Beginning RM Inventory 96000
Add RM purchased. ?
Less ending RM Inventory 120000
Equals DRM used 490000

490000=96000+X-120000
Solve for x
X=514000

RM purchased.(X)=514000

Hope it helps!