Widget Maker Manufacturing uses job costing. In May, material requisitions were $ 44,300 ($ 39,700 of these were direct materials), and raw material purchases were $ 58,100. The end of month balance in raw materials inventory was $ 25,300. What was the beginning raw materials inventory balance?

Question

Simeon Norton

Business

2 December, 15:52

Widget Maker Manufacturing uses job costing. In May, material requisitions were $ 44,300 ($ 39,700 of these were direct materials), and raw material purchases were $ 58,100. The end of month balance in raw materials inventory was $ 25,300. What was the beginning raw materials inventory balance?

+2

Answers (1)

Know the Answer?

Miya Li · Answer 1

Beginning Material = $11,500

Explanation:

given data

material requisitions = $44,300

direct materials = $39,700

raw material purchases = $58,100

end month balance raw materials inventory = $25,300

to find out

beginning raw materials inventory balance

solution

we know that Beginning Material is express as here

Beginning Material = Ending Material - Purchases + Requisitions ... 1

put here value in equation 1 we get

Beginning Material = Ending Material - Purchases + Requisitions

Beginning Material = $25,300 - $58,100 + $44,300

Beginning Material = $11,500