Asked by Mariela Nieto on Jun 24, 2024
Verified
Tatar Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year: Results of operations: How much is the ending balance in the Raw Materials inventory account?
A) $37,000
B) $120,000
C) $83,000
D) $517,000
Job-Order Costing
A costing method used to allocate costs to specific jobs or orders, tracking the expenses associated with each job individually.
Raw Materials Inventory
The stock of unprocessed materials waiting to be used in the manufacturing process.
Operations
A series of actions or activities conducted in a business or system to produce or achieve certain results or goods.
- Identify and use relevant T-account summaries to track production costs and inventory movements.
Verified Answer
KO
Kylie OlsonJun 28, 2024
Final Answer :
C
Explanation :
The ending balance in the Raw Materials inventory account can be calculated by subtracting the cost of materials used from the beginning balance in Raw Materials inventory and adding any additional materials purchased during the year. Using the information provided, we can calculate the ending balance in Raw Materials inventory as follows:
Beginning balance in Raw Materials inventory = $75,000
Cost of materials used = $250,000
Additional materials purchased during the year = $58,000
Ending balance in Raw Materials inventory = Beginning balance + additional materials purchased - cost of materials used
= $75,000 + $58,000 - $250,000
= $83,000
Therefore, the correct answer is C.
Beginning balance in Raw Materials inventory = $75,000
Cost of materials used = $250,000
Additional materials purchased during the year = $58,000
Ending balance in Raw Materials inventory = Beginning balance + additional materials purchased - cost of materials used
= $75,000 + $58,000 - $250,000
= $83,000
Therefore, the correct answer is C.
Explanation :
The ending balance in Raw Materials is computed as follows: *37,000 + 480,000 ? 434,000 = 83,000
Learning Objectives
- Identify and use relevant T-account summaries to track production costs and inventory movements.
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