As of December 31, 2017, Waterway Industries had $3500 of raw materials inventory. At the beginning of 2017, there was $3000 of

Question

3 years ago

7

As of December 31, 2017, Waterway Industries had $3500 of raw materials inventory. At the beginning of 2017, there was $3000 of

materials on hand. During the year, the company purchased $475000 of materials; however, it paid for only $412500. How much inventory was requisitioned for use on jobs during 2017?

Business

1 answer:

Daniel [21] · Answer 1 · 2021-12-17T14:33:43+03:00

Answer: <em>Inventory requisitioned for job = $481500</em>

Explanation:

Given:

Raw materials = $3500

Material on hand = $3000

Material purchased = $475000

Paid (for material purchased) = $412500

Therefore we can compute the inventory requisitioned for job using the following formula:

Inventory requisitioned for job = Material purchased + Opening inventory - Closing inventory

Inventory requisitioned for job = $3500 +$3000 + $475000

Inventory requisitioned for job = $481500