Garcia company reports beginning raw materials inventory of \( \$ 873 \) and ending raw materials inventory of \( \$ 735 \). If the company purchased \( \$ 3,457 \) of raw materials during the month, what is the amount of materials used during the month? Note: Assume all raw materials were used as direct materials. Raw materials used
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To find the amount of raw materials used during the month, you can use the formula: \[ \text{Raw Materials Used} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} \] Substituting the values: \[ \text{Raw Materials Used} = \$873 + \$3,457 - \$735 = \$3,595 \] So, the amount of raw materials used during the month is **$3,595**. If you’re ever stuck on inventory calculations, remember to keep an eye on the direction of the changes: beginning points to what you had at the start, purchases add to it, and ending inventory is what’s left. A common mistake is flipping the subtraction order, which leads to incorrect totals!