Question

Tatar Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Beginning inventories: Raw materials $ 37,000 Work in process $ 15,000 Results of operations: Raw materials purchased on account $ 480,000 Raw materials (all direct) requisitioned for use in production $ 434,000 How much is the ending balance in the Raw Materials inventory account

Answer 1

$83000

Step-by-step explanation:

Inventory account data

Opening Balance = 37000

Purchases = 480,000

Usage = 434,000

We can calculate the closing balance by following formula

Closing balance = Opening balance + purchases - Usage

Closing balance = 37000 + 480000 - 434000

Closing balance = 83000

Therefore closing balance in raw material account is $83000