Tektron Industries has beginning and ending raw materials inventories of $32,000 and $40,000, respectively. Direct materials used were $130,000. The cost of raw materials purchased isA$140,000You got it wrong : B$122,000C$130,000This is correct answer : D$138,000 (130K+40K) - 32K

D$138,000

Explanation:

We know that

Direct material used = Beginning balance of raw material inventory + purchase made during the year - ending balance of raw material inventory

$130,000 = $32,000 + purchase made during the year - $40,000

$130,000 = - $8,000 + purchase made during the year

So, purchase would be

= $130,000 + $8,000

= $138,000