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?

Question

Business

Clare Solomon

15 February, 17:33

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?

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Answers (1)

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Charlotte Snow · Answer 1

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