Costas Company Has Beginning and Ending Raw Materials Inventories of $64,000

question 13

Multiple Choice

Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively.If direct materials used were $290,000, what was the cost of raw materials purchased?

• A)$290,000.
• B)$310,000.
• C)$274,000.
• D)$306,000.

---

Definitions:

Total Stockholders' Equity

The total net value of a company as determined by subtracting its total liabilities from its total assets, representing ownership interest.

Stockholder

An individual or entity that owns shares in a corporation's stock, giving them a claim on parts of the corporation’s assets and earnings.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; also known as shareholder's equity.