If the beginning raw materials inventory balance is $50 and the ending raw materials inventory balance is $500 and the amount of raw materials placed into production $400what are the Net Purchases for the period

the net purchase is $850

Explanation:

The computation of the net purchase is shown below:

The amount of raw material placed into production = opening inventory + net purchase - ending inventory

$400 = $50 + net purchase - $400

So, the net purchase is $850

hence, the net purchase is $850

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