When a perpetual inventory system is used, the balance of the Raw Materials Inventory account at the end of an accounting period should reflect the cost of materials on hand.

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In a perpetual inventory system, the balance of the Raw Materials Inventory account is updated continuously to reflect the cost of materials on hand. Therefore, at the end of an accounting period, the balance of the Raw Materials Inventory account should reflect the actual cost of materials on hand.

When a Perpetual Inventory System Is Used, the Balance of the Raw