Question

EB4.

LO 4.3Masonry’s records show the raw materials inventory had purchases of $1,000 and an ending raw materials inventory balance of $200. If the cost of materials used during the month was $900, what was the beginning inventory?

Answer 1

$100

Step-by-step explanation:

The computation is shown below;

We know that

Cost of material used = Beginning balance of raw material inventory + purchase made during the month - ending balance of raw material inventory

$900 = Beginning balance of raw material inventory + $1,000 - $200

$900 = Beginning balance of raw material inventory + $800

So, the Beginning balance of raw material inventory would be

= $900 - $800

= $100