Widget Maker Manufacturing uses job costing. In May, material requisitions were $44,600 ($39,600 of these were direct materials), and raw material purchases were $58,700. The end of month balance in raw materials inventory was $25,000. What was the beginning raw materials inventory balance?

Question

Quizplus · Accepted Answer

To find the beginning raw materials inventory balance, use the formula: Beginning Inventory + Purchases - Material Requisitions = Ending Inventory. Plugging in the given values: Beginning Inventory + $58,700 - $44,600 = $25,000. Solving for Beginning Inventory gives $10,900.

Widget Maker Manufacturing Uses Job Costing