Concord Corporation has beginning and ending raw materials i

Concord Corporation has beginning and ending raw materials inventories of $74000 and $90000, respectively. If direct materials used were $210000, what was the cost of raw materials purchased?

Solution

Beginning Raw Material Inventories + Cost of raw materials purchased -Direct materials used = Ending Raw Materials Inventories

or Cost of raw materials purchased =$ 90,000 - $ 74,000 + $ 210,000

= $ 226,000

Hence the correct answer is $ 226,000