Question

Compute the amount of raw materials used during August if $39,000 of raw materials were purchased during the month and the inventories were as follows:

Col1 Inventories Raw materials Work in process Finished goods
Col2 Balance August 1 $3,500 $12,000 $18,000
Col3 Balance August 31 $3,600 $10,000 $16,000

Answer 1

$38,900

Step-by-step explanation:

The formula and the computation of raw material used is shown below:

Raw material used = Beginning balance of raw material + purchase made during the year - ending balance of raw material

= $3,500 + $39,000 - $3,600

= $38,900

Simply we added the purchased amount and deduct the ending balance of raw material to the beginning balance of raw material so that the accurate amount can come