Question

Widget Maker Manufacturing uses job costing. In​ May, material requisitions were $ 44 comma 600 ​($ 39 comma 700 of these were direct​ materials), and raw material purchases were $ 58 comma 600. The end of month balance in raw materials inventory was $ 24 comma 900. What was the beginning raw materials inventory​ balance?

Answer 1

Answer:

The beginning raw materials inventory​ balance is $10,900

Explanation:

In this question, we apply the formula  ending balance of raw material which is shown below:

Ending balance of raw material = Beginning balance of raw material + purchase of material - material requisitions

$24,900 =  Beginning balance of raw material + $58,600 - $44,600

$24,900 = Beginning balance of raw material + $14,000

So, the beginning balance of raw material

= $24,900 - $14,000

= $10,900