Question

Andrew Industries purchased $172,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $23,400, and the materials used to complete jobs during the month were $147,300 of direct materials and $13,700 of indirect materials. What is the ending Raw Materials Inventory balance for March?

Answer 1

Answer:

ending inventory= $34,400

Explanation:

Giving the following information:

Purchase= $172,000

Beginning Raw Materials= $23,400

Materials used= $147,300 of direct materials and $13,700 of indirect materials. (161,000)

To calculate the raw materials ending inventory, we need to use the following formula:

Direct material used= beginning inventory + purchases - ending inventory

161,000= 23,400 + 172,000 - ending inventory

ending inventory= 23,400 + 172,000 - 161,000

ending inventory= $34,400