Question

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. What is the ending Raw Materials Inventory balance for March?

Answer 1

Answer: $33,000

Explanation:

The Raw Materials balance included both direct and indirect materials so the ending raw material inventory balance would be;

= Beginning balance + Raw materials purchased - direct materials used - indirect materials used

= 22,000 + 165,000 - 141,000 - 13,000

= $33,000