Question

Andrew Industries purchased $159,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $20,800, and the materials used to complete jobs during the month were $135,600 of direct materials and $12,400 of indirect materials. What is the ending Raw Materials Inventory balance for March?

Answer 1

Answer:

Ending Inventory = 31,800

Explanation:

We use the Inventory identity to solve for ending inventory

$Beginning Inventory + Purchase = Ending Inventory + used$

20,800 +159,000 = ending inventory + used materials

used materials

135,600 direct

12,400 indirect

148,000 total materials used

20,800 + 159,000 = Ennding Inventory + 148,000

20,800 + 159,000 - 148,000 = Ending Inventory

Ending Inventory = 31,800