Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials.
-What is the ending Raw Materials Inventory balance for March?
A) $33,000
B) $9,000
C) $24,000
D) $46,000
E) $11,000

Question

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. 
-What is the ending Raw Materials Inventory balance for March?
A) $33,000
B) $9,000
C) $24,000
D) $46,000
E) $11,000

Quizplus · Accepted Answer

The ending Raw Materials Inventory balance is calculated as follows: Beginning Inventory ($22,000) + Purchases ($165,000) - Materials Used ($141,000 + $13,000) = $33,000.

Andrew Industries Purchased $165,000 of Raw Materials on Account During