Micker Boots produces cowboy boots, Its Raw Materials account contains only direct materials.If the ending balance in Raw Materials Inventory is $3,500, $60,000 was purchased, and $61,500 was transferred to Work in Process Inventory during the period, what was the amount in beginning inventory?

Question

Quizplus · Accepted Answer

The beginning inventory can be calculated using the formula: Beginning Inventory + Purchases - Transferred to WIP = Ending Inventory. Plugging in the given values: Beginning Inventory + $60,000 - $61,500 = $3,500. Solving for Beginning Inventory gives us $5,000.

Micker Boots Produces Cowboy Boots, Its Raw Materials Account Contains