If the ending balance in Raw Materials Inventory is $3,500,$60,000 was purchased,and $61,500 was transferred to Work in Process Inventory during the period,what was the amount in beginning inventory?

Question

Quizplus · Accepted Answer

The beginning inventory can be calculated using the formula: Beginning Inventory + Purchases - Transfers to Work in Process = Ending Inventory. Plugging in the values: Beginning Inventory + $60,000 - $61,500 = $3,500. Solving for Beginning Inventory gives $5,000.

If the Ending Balance in Raw Materials Inventory Is $3,500,$60,000