Problem:
A company had materials inventory at July 1 of $12,000. The materials inventory at July 31 was $15,000 and the cost of direct materials used in production was $20,000.
Required:
Question: What was the cost of materials purchased during the month?
a. $23,000
b. $17,000
c. $35,000
d. $20,000
Note: Please show how you came up with the solution.