Value Wood utilizes job-order costing.The company began the month of July with $35,000 in raw materials.During the month $300,000 of additional raw materials were purchased and $295,000 of direct materials were requisitioned from the storeroom.How much will be reported on Value Wood's balance sheet for Raw Materials at the end of July?

Question

Quizplus · Accepted Answer

The raw materials at the end of July are calculated by starting with the beginning balance ($35,000), adding purchases ($300,000), and subtracting the materials requisitioned ($295,000). This results in $40,000 ($35,000 + $300,000 - $295,000) of raw materials remaining.

Value Wood Utilizes Job-Order Costing