Question

Elm Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 Raw materials inventory $420,000 $350,000 Work in process inventory 400,000 275,000 Finished goods inventory 200,000 125,000 During 2020, $750,000 of raw materials were purchased, direct labor costs amounted to $560,000, and manufacturing overhead incurred was $630,000. The total raw materials available for use to assign to production during 2020 for Elm Company is Group of answer choices

Answer 1

Answer:

$680,000

Explanation:

The computation of the raw material allocated to production is shown below:

As we know that

Raw materials used in production = Beginning raw materials + Purchase of raw materials -  Ending raw materials

= $350,000 + $750,000 - $420,000

= $680,000