Question

As of December 31, 2013, Stand Still Industries had $2,500 of raw materials inventory. At the beginning of 2013, there was $2,000 of materials on hand. During theyear, the company purchased $325,000 of materials; however, it paid for only $312,500.How much inventory was requisitioned for use on jobs during 2013?

Answer 1

To find how much inventory was requisitioned for use in 2013, add the beginning inventory to purchases, then subtract the ending inventory. It amounts to $324,500 of inventory being requisitioned for use on jobs in 2013.

Step-by-step explanation:

To calculate how much inventory was requisitioned for use on jobs during 2013 for Stand Still Industries, we need to look at the raw materials inventory levels at the beginning and end of the year, as well as the amount of materials purchased and paid for.

At the beginning of 2013, there was $2,000 of materials on hand. During the year, the company purchased $325,000 of materials, and by the end of 2013, the raw materials inventory was $2,500. However, the company only paid for $312,500 worth of materials.

To find out how much was requisitioned, we use the following formula:

1. Add the beginning inventory to the total purchases.
2. Subtract the ending inventory from the sum obtained in step 1.

The calculation is as follows:

Beginning Inventory + Purchases - Ending Inventory = Inventory Requisitioned

$2,000 + $325,000 - $2,500 = $324,500

Therefore, $324,500 of inventory was requisitioned for use on jobs during 2013.

Answer 2

349,500 = Used Into Production

Step-by-step explanation:

`$$Beginning Inventory + Purchase = Ending Inventory + Used`

2,000 beginning inventory

+325,000 purchased

-used into production

=2,500 ending inventory

2,000+325,000-2,500 = Used

349,500 = Used

When the materials were purchased the discount were to a diferent account, the materials were accounted for their complete value

materials 325,000

account payable 325,000

account payable 325,000

discounts 12,500

cash 312,500