As of December 31, 2010, Stand Still Industries had $2,500 of raw materials inventory. At the beginning of 2010, there was $2,000 of materials on hand. During the year, the company purchased $305,000 of materials; however, it paid for only $292,500. How much inventory was requisitioned for use on jobs during 2010?

Question

Quizplus · Accepted Answer

To find the inventory requisitioned for use, calculate the total materials available and subtract the ending inventory. Total materials available = Beginning inventory + Purchases = $2,000 + $305,000 = $307,000. Inventory requisitioned = Total materials available - Ending inventory = $307,000 - $2,500 = $304,500.

As of December 31, 2010, Stand Still Industries Had $2,500