Tatar 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)$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:  Results of operations:  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 materials used from the beginning balance in Raw Materials inventory and adding any additional materials purchased during the year. Using the information provided, we can calculate the ending balance in Raw Materials inventory as follows:

Beginning balance in Raw Materials inventory = $75,000 
Cost of materials used = $250,000 
Additional materials purchased during the year = $58,000 
Ending balance in Raw Materials inventory = Beginning balance + additional materials purchased - cost of materials used 
= $75,000 + $58,000 - $250,000 
= $83,000

Therefore, the correct answer is C. The ending balance in Raw Materials is computed as follows: 11ea7998_5efb_edc0_911b_afc8e4eb71de_TB2627_00_TB2627_00 *37,000 + 480,000 ? 434,000 = 83,000

Tatar Corporation Is a Manufacturer That Uses Job-Order Costing