Andrew Industries purchased $172,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $23,400, and the materials used to complete jobs during the month were $147,300 of direct materials and $13,700 of indirect materials. What is the ending Raw Materials Inventory balance for March?

Question

Jackson Norton

Business

1 July, 05:10

Andrew Industries purchased $172,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $23,400, and the materials used to complete jobs during the month were $147,300 of direct materials and $13,700 of indirect materials. What is the ending Raw Materials Inventory balance for March?

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Answers (1)

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Kylan · Answer 1

ending inventory = $34,400

Explanation:

Giving the following information:

Purchase = $172,000

Beginning Raw Materials = $23,400

Materials used = $147,300 of direct materials and $13,700 of indirect materials. (161,000)

To calculate the raw materials ending inventory, we need to use the following formula:

Direct material used = beginning inventory + purchases - ending inventory

161,000 = 23,400 + 172,000 - ending inventory

ending inventory = 23,400 + 172,000 - 161,000

ending inventory = $34,400