Question

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?

Answer 1

Answer: Inventory requisitioned for job = $481500

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