Question

Sunland Company's accounting records reflect the following inventories: Dec. 31, 2019 Dec. 31, 2020 Raw materials inventory $ 78000 $ 62000 Work in process inventory 102000 114000 Finished goods inventory 100000 92000 During 2020, Sunland purchased $1450000 of raw materials, incurred direct labor costs of $250000, and incurred manufacturing overhead totaling $160000. How much raw materials were transferred to production during 2020 for Sunland

Answer 1

Answer:

$1,466,000.00

Explanation:

Calculation to determine How much raw materials were transferred to production during 2020 for Sunland

RAW MATERIALS TRANSFERRED TO PRODUCTION

Beginning Raw material inventory $78,000.00

Raw material Purchases $1,450,000

Total Raw material available for use $1,528,000.00

($78,000+$1,450,000)

Less: Ending Raw material inventory $62,000.00

Raw materials transferred to production $1,466,000.00

($1,528,000.00-$62,000.00)

Therefore the Amount of raw materials that were transferred to production during 2020 for Sunland is $1,466,000.00