In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the "Total raw materials available" is computed by adding together the "Beginning raw materials inventory" and:
A) Ending raw materials inventory
B) Raw materials used in production
C) Purchases of raw materials
D) Indirect materials included in manufacturing overhead

Question

Quizplus · Accepted Answer

The "Total raw materials available" represents the total amount of raw materials that were available for use in production during the accounting period, regardless of whether those materials were actually used or not. Therefore, it is computed by adding together the "Beginning raw materials inventory" and the "Purchases of raw materials" during the period. The "Ending raw materials inventory" represents the amount of raw materials that were not used in production and were still on hand at the end of the period, so it is not included in the computation of the "Total raw materials available." The "Indirect materials included in manufacturing overhead" are not included in the computation of the "Total raw materials available" because they are already included in the calculation of the manufacturing overhead applied to production.