As of December 31 2022 Nilsen Company had $2000 of raw materials inventory.At the beginning of 2022 there was $1600 of materials on hand.During the year the company purchased $354000 of materials; however it paid for only $314000.How much inventory was requisitioned for use on jobs during 2022?

Question

Quizplus · Accepted Answer

The inventory requisitioned for use on jobs during 2022 can be calculated using the following formula:
Beginning inventory + Purchases - Ending inventory = Inventory requisitioned for use
Beginning inventory = $1600
Purchases = $354000
Ending inventory = $2000
Therefore,
$1600 + $354000 - $2000 = $353600
Hence, the answer is D.

As of December 31 2022 Nilsen Company Had $2000 of Raw