Question

Widget Maker Manufacturing uses job costing. In​ May, material requisitions were $ 44,300 ​($ 39,700 of these were direct​ materials), and raw material purchases were $ 58,100. The end of month balance in raw materials inventory was $ 25,300. What was the beginning raw materials inventory​ balance?

Answer 1

Answer:

Beginning Material = $11,500

Explanation:

given data

material requisitions = $44,300

direct​ materials = $39,700

raw material purchases = $58,100

end month balance raw materials inventory = $25,300

to find out

beginning raw materials inventory​ balance

solution

we know that Beginning Material is express as here

Beginning Material = Ending Material - Purchases + Requisitions ..............1

put here value in equation 1  we get

Beginning Material = Ending Material - Purchases + Requisitions

Beginning Material = $25,300 - $58,100 + $44,300

Beginning Material = $11,500