Question

Verify the ending balance in raw materials inventory?

Answer 1

To verify the ending balance in raw materials inventory, conduct a physical count and compare it to the recorded balance in the inventory ledger.

Step-by-step explanation:

The ending balance in raw materials inventory can be verified by conducting a physical count of the raw materials on hand and comparing it to the recorded balance in the inventory ledger.

This process involves the following steps:

1. Identify the raw materials inventory account in the general ledger.
2. Observe and record the quantities of each type of raw material in stock.
3. Add up the quantities to calculate the ending balance of raw materials inventory.
4. Compare this ending balance to the recorded balance in the general ledger.
5. If they match, the ending balance is verified. If they do not match, investigate and reconcile any discrepancies.

By following these steps, you can ensure the accuracy of the ending balance in raw materials inventory.