Question

f the company estimates that it will need 55,480 pounds of raw material to satisfy production needs in March, then the raw materials inventory balance at the end of February should be closest to: Multiple Choice $55,108 $50,152 $5,548 $4,956

Answer 1

$5,548

Step-by-step explanation:

Bonkowski Corporation

Estimated raw materials inventory balance at the end of February will be:

Raw materials inventory (ending) 5,548

(55,480 pounds × 10% )

Cost per pound $1.00

Hence:

Balance of Raw material inventory at the end of February will be:

$5,548 ×$1.00

=$5,548