Dentlinger Company uses a job-order cost system and had the following data available for 20X2.

-The ending inventory of direct materials is
A) $184,000.
B) $348,000.
C) $164,000.
D) $216,000.

Question

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.
 
-The ending inventory of direct materials is
A) $184,000. 
B) $348,000. 
C) $164,000. 
D) $216,000.

Quizplus · Accepted Answer

The ending inventory of direct materials is $184,000. This is because the beginning inventory was $164,000, and $20,000 of direct materials were purchased during the year. The total amount of direct materials available for use is therefore $184,000. Of this amount, $20,000 was used in production, leaving an ending inventory of $184,000.

Dentlinger Company Uses a Job-Order Cost System and Had the Following