Question

On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n) subtraction from raw materials purchases. subtraction from raw materials available for use. addition to raw materials purchases. addition to raw materials available for use.

Answer 1

subtraction from raw materials available for use

Step-by-step explanation:

As we know that

= Direct materials used + Direct labor cost + Manufacturing overhead cost + beginning work-in-process inventory - ending work-in-process inventory

Therefore from the above formula we can conclude that the ending inventory should be deducted from the total manufacturing cost including the beginning work in process inventory