Niles Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Results of operations:
How much is the ending balance in the Raw Materials inventory account?
A) $97,000
B) $585,000
C) $47,000
D) $50,000

Question

Niles Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:  Results of operations:
 How much is the ending balance in the Raw Materials inventory account?
A) $97,000 
B) $585,000 
C) $47,000 
D) $50,000

Quizplus · Accepted Answer

The ending balance in the Raw Materials inventory account can be calculated using the formula: Beginning balance + Purchases - Direct Materials Used = Ending balance.

Beginning balance = $50,000 
Purchases = $780,000 
Direct Materials Used = $783,000

Therefore, Ending balance = $50,000 + $780,000 - $783,000 = $47,000.

Hence, option C is the correct answer.

Niles Corporation Is a Manufacturer That Uses Job-Order Costing