Question

Lakeside Machining, Incorporated, has the following inventory account balances and related manufacturing cost information for the month of August: Raw materials, August 1 $65,000; Raw materials, August 31 $72,000; Raw materials purchased $286,000. In Lakeside’s statement of cost of goods manufactured for August, raw materials used will be reported as...

a) $279,000
b) $293,000
c) $307,000
d) $321,000

Answer 1

In Lakeside's statement of cost of goods manufactured for August, raw materials used will be reported as $279,000.

Step-by-step explanation:

In Lakeside's statement of cost of goods manufactured for August, raw materials used will be reported as the difference between the raw materials available at the beginning of the month and the raw materials available at the end of the month, plus the raw materials purchased during the month.

Raw materials used = (Raw materials, August 1 - Raw materials, August 31) + Raw materials purchased

Raw materials used = ($65,000 - $72,000) + $286,000

Raw materials used = $279,000

Therefore, the correct answer is a) $279,000.