The year-end balance in the Materials Inventory controlling account is equal to:
A)The total of the various materials subsidiary ledger accounts (the materials on hand at the end of the period).
B)The total amount of materials requisitioned during the period.
C)The total amount of materials purchased during the period.
D)The amount of materials debited to the Work-in-Process Inventory account during the period.

Question

Quizplus · Accepted Answer

The year-end balance in the Materials Inventory controlling account represents the total amount of materials on hand at the end of the period, which is the total of the various materials subsidiary ledger accounts. Option B represents the materials used during the period, option C represents the total amount of materials purchased during the period, and option D represents the materials used in production during the period, all of which are not the year-end balance in the Materials Inventory controlling account.

The Year-End Balance in the Materials Inventory Controlling Account Is