If the beginning balance in the raw materials inventory account for the month was Rs. 25,000, the ending balance was Rs. 22,000 and material used during the month was Rs. 1,30,000. What is the amount of materials purchased during the month?

[amp_mcq option1=”Rs. 1,77,000″ option2=”Rs. 1,30,000″ option3=”Rs. 1,27,000″ option4=”Rs. 1,33,000″ correct=”option1″]

The correct answer is A. Rs. 1,77,000.

The amount of materials purchased during the month is calculated as follows:

Beginning balance of raw materials inventory + Purchases of raw materials = Ending balance of raw materials inventory + Materials used during the month

25,000 + Purchases of raw materials = 22,000 + 1,30,000

Purchases of raw materials = 1,77,000