Question

As of December 31, 2013, Stand Still Industries had $2,500 of raw materials inventory. At the beginning of 2013, there was $2,000 of materials on hand. During theyear, the company purchased $325,000 of materials; however, it paid for only $312,500.How much inventory was requisitioned for use on jobs during 2013?

Answer 1

Answer:

349,500 = Used Into Production

Explanation:

$Beginning Inventory + Purchase = Ending Inventory + Used$

2,000 beginning inventory

+325,000 purchased

-used into production

=2,500 ending inventory

2,000+325,000-2,500 = Used

349,500 = Used

When the materials were purchased the discount were to a diferent account, the materials were accounted for their complete value

materials 325,000

account payable 325,000

account payable 325,000

  discounts                           12,500

  cash                                 312,500