An examination of Tall Corporation's inventory accounts revealed the following information: $\begin{array} { l l }
\text { Raw materials inventory, September 1: } & 30,000 \text { units } \
\text { Raw materials inventory, September 30: } & 41,000 \text { units } \
\text { Purchases of raw materials during September: } & 200,000 \text { units }
\end{array}$ Tall's finished product requires four units of raw materials. On the basis of this information, how many finished products were manufactured during September?

Question

An examination of Tall Corporation's inventory accounts revealed the following information: $\begin{array} { l l } 
\text { Raw materials inventory, September 1: } & 30,000 \text { units } \
\text { Raw materials inventory, September 30: } & 41,000 \text { units } \
\text { Purchases of raw materials during September: } & 200,000 \text { units }
\end{array}$ Tall's finished product requires four units of raw materials. On the basis of this information, how many finished products were manufactured during September?

Quizplus · Accepted Answer

To find out the number of finished products manufactured, we need to calculate the amount of raw materials used in production, and then divide by 4 (since four units of raw materials are required to produce one finished product).

Raw materials used = Purchases + Beginning inventory - Ending inventory
Raw materials used = 200,000 + 30,000 - 41,000
Raw materials used = 189,000 units

Number of finished products = Raw materials used / 4
Number of finished products = 189,000 / 4
Number of finished products = 47,250

Therefore, the answer is (B) 47,250.

An Examination of Tall Corporation's Inventory Accounts Revealed the Following