The following information is available for the year ended December 31: Beginning raw materials inventory $ 11,600 Raw materials purchases 87,200 Ending raw materials inventory 11,000 Manufacturing supplies expense 840 The amount of raw materials used in production for the year is:

Question

Business

Calvin Frye

17 March, 08:30

The following information is available for the year ended December 31: Beginning raw materials inventory $ 11,600 Raw materials purchases 87,200 Ending raw materials inventory 11,000 Manufacturing supplies expense 840 The amount of raw materials used in production for the year is:

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Answers (1)

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Melina · Answer 1

Direct Material used = $87,800

Explanation:

Giving the following information:

Beginning raw materials inventory $ 11,600

Raw materials purchase 87,200

Ending raw materials inventory 11,000

To calculate the raw material used, we need to use the following formula:

Direct material used = beginning inventory + purchases - ending inventory

DM used = 11,600 + 87,200 - 11,000

DM used = $87,800