Question

Marigold Corp.'s accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $320000 $260000 Work in process inventory 300000 160000 Finished goods inventory 190000 150000 During 2017, $830000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000. The total raw materials available for use during 2017 for Marigold Corp. is

Answer 1

Answer:

Raw material available for use= $1,150,000

Explanation:

Giving the following information:

Beginning Raw materials inventory=  $320,000

Raw material purchased= $830,000

To calculate the raw material available for use, we need to use the following formula:

Raw material available for use= Beginning Raw materials inventory + Raw material purchased

Raw material available for use= 320,000 + 830,000

Raw material available for use= $1,150,000