At the beginning of the month, AGN Manufacturing had the following information available for the month of September:
|Raw materials inventory||$25,000||$32,000|
|Work in process inventory||60,000||85,000|
|Finished goods inventory||10,000||2,000|
During the month of September the company purchased $120,000 of raw materials.
Calculate how much raw material was used in September?
In manufacturing industries, direct materials is one of the costs used to arrive at the total product/manufacturing cost. This is computed by adding the beginning inventory and the purchases made during the period less the ending inventory.
Answer and Explanation: 1
The raw materials used in the production during September is $113,000
|Raw materials inventory, beginning||25,000|
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fromChapter 11 / Lesson 6
Learn about the direct materials budget, direct materials purchases budget, and the direct materials cost formula. Examine the use and application of the formulas.