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julsineya [31]
3 years ago
13

Compton Inc. has a beginning materials inventory balance for May of $27,500, and an ending balance for May of $28,750. Materials

used during the month were $128,900. As a result, what is the cost of materials purchased during the month
Business
1 answer:
Ahat [919]3 years ago
8 0

Answer:

Purchases= $130,150

Explanation:

Giving the following information:

Beginning inventory= $27,500

Ending inventory= $28,750.

Materials used during the month were $128,900.

<u>To calculate the direct material purchase, we need to use the following formula:</u>

Purchases= production + desired ending inventory - beginning inventory

Purchases= 128,900 + 28,750 - 27,500

Purchases= $130,150

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