As of December 31, 2010, Nilsen Industries had $2,000 of raw materials inventory. At the beginning of 2010, there was $1,600 of materials on hand. During the year, the company purchased $274,000 of materials; however it paid for only $264,000. How much inventory was requisitioned for use on jobs during 2010?

Question

Quizplus · Accepted Answer

The inventory requisitioned for use is calculated as: Beginning Inventory + Purchases - Ending Inventory = $1,600 + $274,000 - $2,000 = $273,600.

As of December 31, 2010, Nilsen Industries Had $2,000 of Raw