Value Wood utilizes job-order costing. The company began the month of July with $35,000 in raw materials. During the month $300,000 of additional raw materials were purchased and $295,000 of materials were requisitioned from the storeroom. How much will be reported on Value Wood's balance sheet for Raw Materials at the end of July?

Question

Quizplus · Accepted Answer

The ending balance of raw materials is calculated as the beginning balance plus purchases minus requisitioned materials: $35,000 + $300,000 - $295,000 = $40,000.

Value Wood Utilizes Job-Order Costing