3M Co. reports beginning raw materials inventory of $986 million and ending raw materials inventory of $928 million. 3M purchased $4,576 million of raw materials during the year. What is the amount of raw materials it used during the year?

Question

Business

Amara Noble

5 May, 18:43

3M Co. reports beginning raw materials inventory of $986 million and ending raw materials inventory of $928 million. 3M purchased $4,576 million of raw materials during the year. What is the amount of raw materials it used during the year?

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Answers (1)

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Amanda Duran · Answer 1

The amount of raw materials used in the year by 3M Co. is $4634 million

Explanation:

The amount of raw materials used in the year is the opening inventory of raw materials added to purchases of raw materials in the year, minus the closing inventory of raw materials.

In other words, the below shows the computation of raw materials used in the year:

Opening inventory of raw materials $986,000,000

Purchases of raw materials $4,576,000,000

Less closing inventory of raw materials $928,000,000

Raw materials used $4,634,000,000

The proforma used is similar that of costs of goods sold where opening inventory of goods is added to purchases of goods, while closing inventory of finished goods is deducted.