Blue Dynamics manufactures custom water fountains and employs job-order costing system. Beginning raw materials on October 1 totaled $15,600. During October, Blue Dynamic's transactions and accounts included the following: $\begin{array}{lr}
\text { Raw materials acquired for cash } & \$ 7,500 \
\text { Raw materials received on account } & 88,900 \
\text { Direct materials requisitioned and transferred to production } & 91,200 \
\text { Cost of goods manufactured } & 187,900
\end{array}$ How much is the balance of Raw Materials on October 31?

Question

Quizplus · Accepted Answer

Raw materials beginning balance + Raw materials acquired - Direct materials requisitioned = Raw materials ending balance$15,600 + $7,500 + $88,900 - $91,200 = $20,800

Blue Dynamics Manufactures Custom Water Fountains and Employs Job-Order Costing