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how do i work out the answer to this question?
The following represents transactions on the material account for a company for the month of march 2010:
issued to production 144,000
returned to stores 5,000The material inventory at 1 march was 23,000 and at 31 march was 15,000
How much material was purchased in march 2010?Of the 144,000 issued to production, 5,000 were returned to stores, so production only needed 139,000.
The inventory fell by 8,000 units, which must mean that 8,000 of the units issued for production came from inventory and did not need to be purchased.
Therefore they only needed to purchase the remaining 139,000 – 8,000 = 131,000.
(Does your Kaplan Kit not give the answer together with the workings? 🙂 )
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