Question

The Raw Materials Inventory account had a balance of $13,463 on January 1. During the month of January, the company had the following transactions: 1. Purchased $12,481 of wool. 2. Purchased $15,327 of cotton. 3. Spent $312 on freight charges. 4. Received a discount of $153 for their cotton order. 5. Returned $1,722 of flawed polyester. 6. Used $8,318 of wool. 7. Used $16,964 of cotton. What is the balance of the Raw Materials Inventory account on January 31?

Answer 1

Answer:

$14,426

Explanation:

The balance on the inventory account on January 31 will be computed as follows:

Opening balance    =        $13,463

Wool purchase       =   +    $12,481

Cotton purchase    =   +    $15,327

Freight charges      =   +    $312

Cotton discount     =    -    $153

Polyester returns   =    -    $1,722

Wool used             =     -   $8,318

Cotton used          =     -   $16,964

Balance Jan 31     =          $14,426