Asked by Olympia Thompson on May 09, 2024

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In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the "Total raw materials available" is computed by adding together the "Beginning raw materials inventory" and:

A) Ending raw materials inventory
B) Raw materials used in production
C) Purchases of raw materials
D) Indirect materials included in manufacturing overhead

Total Raw Materials

The full amount of raw materials required for production, including both materials currently in stock and those needed to complete production.

Raw Materials Inventory

The stock of unprocessed inputs kept on hand by a manufacturing company for use in production.

Purchases

The acquisition of goods or services by a company in exchange for money, which are either used in the process of production or sold to customers.

  • Ascertain the production cost of products and calculate the selling cost of these goods through specific accounting equations.
  • Account for the purchase, use, and requisition of raw materials in manufacturing.
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DJ
Deanne JacquesMay 15, 2024
Final Answer :
C
Explanation :
The "Total raw materials available" represents the total amount of raw materials that were available for use in production during the accounting period, regardless of whether those materials were actually used or not. Therefore, it is computed by adding together the "Beginning raw materials inventory" and the "Purchases of raw materials" during the period. The "Ending raw materials inventory" represents the amount of raw materials that were not used in production and were still on hand at the end of the period, so it is not included in the computation of the "Total raw materials available." The "Indirect materials included in manufacturing overhead" are not included in the computation of the "Total raw materials available" because they are already included in the calculation of the manufacturing overhead applied to production.