If the beginning balance in raw materials inventory is Rs. 5,000, the ending balance is Rs. 3,500 and material of Rs. 60,000 was purchased, what is the amount of materials transferred to work-in-processinventory during the period?

Rs. 58,500
Rs. 60,000
Rs. 61,500
Rs. 68,500

The correct answer is A. Rs. 58,500.

To calculate the amount of materials transferred to work-in-process inventory during the period, we can use the following formula:

Materials transferred to work-in-process inventory = Beginning raw materials inventory + Purchases – Ending raw materials inventory

In this case, we have the following information:

  • Beginning raw materials inventory = Rs. 5,000
  • Purchases = Rs. 60,000
  • Ending raw materials inventory = Rs. 3,500

Substituting these values into the formula, we get:

Materials transferred to work-in-process inventory = Rs. 5,000 + Rs. 60,000 – Rs. 3,500 = Rs. 58,500

Therefore, the amount of materials transferred to work-in-process inventory during the period is Rs. 58,500.

Option B is incorrect because it is the total amount of materials purchased during the period. Option C is incorrect because it is the sum of the beginning raw materials inventory and the purchases. Option D is incorrect because it is the sum of the beginning raw materials inventory, the purchases, and the ending raw materials inventory.