Question

On November 1, Arvelo Corporation had $38,500 of raw materials on hand. During the month, the company purchased an additional $71,500 of raw materials. During November, $82,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,300. Prepare journal entries to record these events. Use those journal entries to answer the following questions:

The credits to the Raw Materials account for the month of November total:_________

Answer 1

$73,400

Step-by-step explanation:

The computation of Raw Materials account for the month of November total is shown below:-

Raw Materials account for the month of November = Work in progress inventory - Manufacturing overheads

= ($82,000 - $4,300) - $4,300

= $77,700 - $4,300

= $73,400

Therefore for computing the raw materials we simply applied the above formula.