Andrew Industries purchased $175,000 of raw materials on account during the month of March

Accounting Apr 20, 2021

Andrew Industries purchased $175,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $24,000, and the materials used to complete jobs during the month were $150,000 direct materials and $14,000 indirect materials. What is the ending Raw Materials Inventory balance for March?

Expert Solution

Answer:

A	Raw materials (beginning)	$ 24,000
B	Add: Purchases	$ 1,75,000
C =A+B	Raw material available		$ 1,99,000
D	Less : Raw material consumed
E	Direct material	$ 1,50,000
F	Indirect material	$ 14,000
D =E+F	Total raw material consumed		$ 1,64,000

G =C-D	Raw material (ending)		$ 35,000

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