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The cost of raw materials purchased would be of $126,000.
The cost of raw materials purchased is computed below:
Ending raw materials $100,000
Less: Beginning raw materials $84,000
Increase in raw materials $16,000
Direct materials used $110,000
Raw materials purchased $126,000
Increase in raw materials is found by minus from ending raw materials and less beginning raw materials-
$100,000 - $84,000 = $16,000
Thus, in order to find the cost of raw materials purchased, add Increase in raw materials to direct materials used, that is,
$16,000 + $110,000 = $126,000.
Raw Materials Inventory is one of the types of inventory that can be found on the financial statements of manufacturing companies. Thus, Direct materials are materials which are specifically traceable to the inventories available for sale.
Hence, to learn more about direct materials here:
https://brainly.com/question/14002144
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