Gammil Company Has Beginning and Ending Raw Materials Inventories of $96,000

question 186

Multiple Choice

Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $390,000, what was the cost of raw materials purchased?

• A) $390,000.
• B) $420,000.
• C) $366,000.
• D) $414,000.

---

Definitions:

Expiration Date

The specific date on which an option contract becomes void and the rights to exercise it cease.

Right to Buy

A policy or statute that allows tenants to purchase the home they are renting, often at a discount, most commonly associated with public housing in the UK.

American Put

A type of put option that can be exercised at any time before its expiration, offering the seller protection against declining asset values.

European Put

A type of put option that grants the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a predetermined price on the option's expiration date.