As of the end of the year, Juliette Industries had $25,000 of raw materials inventory. At the beginning of the year, there was $200,000 of materials on hand. During the year, the company purchased $575,000 of materials. How much inventory was requisitioned for use on jobs during the year?

Question

Business

Bernard Wallace

22 November, 01:55

As of the end of the year, Juliette Industries had $25,000 of raw materials inventory. At the beginning of the year, there was $200,000 of materials on hand. During the year, the company purchased $575,000 of materials. How much inventory was requisitioned for use on jobs during the year?

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Answers (1)

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Mike Mckenzie · Answer 1

Direct materials used = $750,000

Explanation:

Giving the following information:

Juliette Industries had $25,000 of raw materials inventory (ending). At the beginning of the year, there was $200,000 of materials on hand. During the year, the company purchased $575,000 of materials.

Direct materials used = beginning inventory + purchases - ending inventory

Direct materials used = 200000 + 575000 - 25000 = $750,000