Ask Question
20 August, 13:23

As of December 31, 2019, Sheridan Company had $3500 of raw materials inventory. At the beginning of 2019, there was $3000 of materials on hand. During the year, the company purchased $315000 of materials; however, it paid for only $252500. How much inventory was requisitioned for use on jobs during 2019

+2
Answers (1)
  1. 20 August, 15:56
    0
    Answer: $314,500

    Explanation:

    When calculating how much of a material of any sort was used, the following formula should be used,

    = Beginning inventory + Purchases - Ending inventory

    This is the same formula largely used to calculate Cost of Goods sold.

    Here, the figure to be concerned about is the actual materials used not the ones paid for.

    Plugging in figures into the formula then,

    = 3,000 + 315,000 - 3,500

    = $314,500

    Thus $314,500 was the inventory requisitioned for use on jobs during 2019.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “As of December 31, 2019, Sheridan Company had $3500 of raw materials inventory. At the beginning of 2019, there was $3000 of materials on ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers