Question

Andrew Industries purchased $173,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $23,600, and the materials used to complete jobs during the month were $148,200 of direct materials and $13,800 of indirect materials. What is the ending Raw Materials Inventory balance for March

Answer 1

Answer:

The ending Raw Materials Inventory balance for March is $34,600

Explanation:

Raw material inventory is the inventory of those material which will be used in the processing of the production of a product. It includes direct material and indirect material as well.

The ending raw material will be calculated as follow

Ending Raw Material = Beginning raw material + Purchases for the period - material used in the period

Ending Raw Material = $23,600 + $173,000 - ( $148,200 + $13,800 )

Ending Raw Material = $23,600 + $173,000 - $162,000

Ending Raw Material = $196,600 - $162,000

Ending Raw Material = $34,600