9) Nemec Manufacturing uses job costing. In May, material requisitions were $44,000 ($39,000 of these were direct materials), and raw material purchases were $60,000. The end of month balance in raw materials inventory was $24,300. What was the beginning raw materials inventory balance

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Business

Patience Lamb

31 July, 02:42

9) Nemec Manufacturing uses job costing. In May, material requisitions were $44,000 ($39,000 of these were direct materials), and raw material purchases were $60,000. The end of month balance in raw materials inventory was $24,300. What was the beginning raw materials inventory balance

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Flash · Answer 1

The beginning raw materials inventory balance was $3,300.

Explanation:

Ending balance of Raw Material Inventory = Opening balance of raw material inventory + Purchases for the period - Material requisitions

$24,300 = Opening balance of raw material inventory + $60,000 - $39,000

$24,300 = Opening balance of raw material inventory + $21,000

Opening balance of raw material inventory = $24,300 - $21,000

Opening balance of raw material inventory = $3,300

The beginning raw materials inventory balance was $3,300.