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: $\begin{array}{lll}
\text {Raw materials acquired for cash }&\$7,500\
\text {Raw materials received on account }&88,900\
\text { Direct materials requisitioned and transferred to production }&91,200\
\text { Cost of goods manufactured}&187,900\
\end{array}$ How much is the balance of Raw Materials on October 31?

Question

Quizplus · Accepted Answer

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

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