If hawkins manufacturing purchased $13,000 in metal, $6,000 in cloth, and $2,000 in cleaning supplies, the raw materials inventory would have

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Business

Simeon Weiss

20 April, 04:06

If hawkins manufacturing purchased $13,000 in metal, $6,000 in cloth, and $2,000 in cleaning supplies, the raw materials inventory would have

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Nyasia Kirk · Answer 1

Raw materials are goods that are for processing which will result in finished products which are for sale.

The raw materials inventory includes the metal of $13,000 and the cloth of $6,000 or a total of $19,000. The $2,000 cleaning supplies do not fall under the classification of raw materials, instead, this falls under prepaid supplies and later reclassified to supplies expense once consumed.