Question

As of December 31, 2017, Nilsen Industries had $2,000 of raw materials inventory. At the beginning of 2017, there was $1,600 of materials on hand. During the year, the company purchased $354,000 of materials; however it paid for only $314,000. How much inventory was requisitioned for use on jobs during 2017?
a.

$354,400

b.

$344,400

c.

$343,600

d.

$353,600

Answer 1

Answer:

inventory requisitioned =  $353,600

so correct option is D. $353,600

Explanation:

given data

Beginning material inventory = $1,600

Ending material inventory = $2,000

purchased  of materials = $354,000

paid = $314,000

to find out

inventory requisitioned

solution

we will apply here inventory requisitioned formula that is

inventory requisitioned = purchase + opening inventory - Ending inventory     ............................1

put here value we get

inventory requisitioned = purchase + opening inventory - Ending inventory

inventory requisitioned =  $354,000 + $1,600 - $2,000

inventory requisitioned =  $353,600

so correct option is D. $353,600