Question

As of the end of the year, Juliette Industries had $25,000 of raw materials inventory. At the beginning of the year, there was $200,000 of materials on hand. During the year, the company purchased $575,000 of materials. How much inventory was requisitioned for use on jobs during the year?

Answer 1

Answer:

Direct materials used= $750,000

Explanation:

Giving the following information:

Juliette Industries had $25,000 of raw materials inventory (ending). At the beginning of the year, there was $200,000 of materials on hand. During the year, the company purchased $575,000 of materials.

Direct materials used= beginning inventory + purchases - ending inventory

Direct materials used= 200000 + 575000 - 25000= $750,000