Sonnheim Manufacturing uses job costing.In May,material requisitions were $51,000 ($45,000 of these were direct materials),and raw material purchases were $58,900.The end of month balance in raw materials inventory was $28,700.What was the beginning raw materials inventory balance?

Question

Quizplus · Accepted Answer

We can use the following formula to calculate the beginning raw materials inventory balance:

Beginning raw materials inventory = Ending raw materials inventory + Raw material purchases - Direct materials used

We know the following information:

- Ending raw materials inventory = $28,700
- Raw material purchases = $58,900
- Direct materials used = $45,000

Plugging these values into the formula, we get:

Beginning raw materials inventory = $28,700 + $58,900 - $45,000
Beginning raw materials inventory = $42,600

Therefore, the correct answer is D) $20,800, as none of the choices provided is correct.

Sonnheim Manufacturing Uses Job Costing