Tatar Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: How much is the ending balance in the Raw Materials inventory account?
A) $37,000
B) $120,000
C) $83,000
D) $517,000

Question

Tatar Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:  How much is the ending balance in the Raw Materials inventory account?
A) $37,000 
B) $120,000 
C) $83,000 
D) $517,000

Quizplus · Accepted Answer

The ending balance in the Raw Materials inventory account can be calculated by subtracting the cost of raw materials used during the year from the beginning balance of raw materials and adding the cost of raw materials purchased during the year. In this case, the calculation is:
Beginning balance of raw materials: $27,000
Cost of raw materials purchased during the year: $84,000
Total raw materials available for use: $111,000
Cost of raw materials used during the year: $28,000
Ending balance in Raw Materials inventory account: $83,000 (Option C)

Tatar Corporation Is a Manufacturer That Uses Job-Order Costing