Question
upstudy study bank question image url

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

Ask by Salinas Collins. in the United States
Mar 15,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

The raw materials used during the month are \$3,595.

Solution

**Step 1: Determine the total raw materials available.** \[ \text{Total Available} = \text{Beginning Inventory} + \text{Purchases} = \$873 + \$3,\!457 = \$4,\!330 \] **Step 2: Subtract the ending raw materials inventory to find the materials used.** \[ \text{Materials Used} = \text{Total Available} - \text{Ending Inventory} = \$4,\!330 - \$735 = \$3,\!595 \] Thus, the raw materials used during the month is \$3,595.

Answered by UpStudy AI and reviewed by a Professional Tutor

error msg
Explain
Simplify this solution

Bonus Knowledge

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!

Related Questions

Latest Economics Questions

The following transactions have been extracted from the books of a parthership ZT Traders (partners Zel an Tees) at the financial year end 28 February 20.9. The business applies a \( 60 \% \) mark-up on cost on all goodi The bank account has a credit balance at all times. REQUIRED: Analyse the following transactions under the headings in your Answer Book. The first one has been done a an example for you. TRANSACTIONS: E.g.: Paid the electricty account of R2 500. 1. Received a direct deposit from a tenant for rent of \( R 5500 \). 2. Provision for bad debts of R3 200 must be reduced to R2 900. 3. Bought packing materials on credit for R1 600 less \( 8 \% \) tade discount. 4. Paid the creditor (see No. 3) by EFT the amount owing less \( 5 \% \) discount. 5. Debtor, J. Mkhize, deposited an amount of R4 248 after a discount of \( 11,5 \% \) had been deducted. 6. Partner Zel took goods with a selling price of R5 000 for his own use. 7. Parther Tees withdrew his monthly salary of R12 000. 8. Partner Zel tuansferred a Gr balance of R 45000 on his current account to his capital account. 9. Trading stock with a selling price of R90 000 must be written down to \( 10 \% \) below the cost price as the stock is now old. 10. Dehtor, J. Mshala, claimed an allowance of \( 15 \% \) on goods with a cost price of R3 600 as they were damaged. Alowed her this claim. 11. A creditor with a debit balance of R500 must be transferred to her debtors account. 12. Depreciation must be written off equipment of R4 200. 13. A credit sale of R950 to F. Fly was recorded in the account of B. Bea in error. 14. Transfer the gross profit of R120 000 . 15. Allocate the interest on capital to partner Zel of R15 000. 16. The final division of profit to partreer Tees was R65 000. 17. The Pre-Adjustment Trial Balance showed insurance of R 33800 . This included an annual premium of R13 200 paid on 1 November 20.8. 18. The consumable stores on hand on 1 March 20.8 for 2920 was not reversed. Make the correction. 19. Partner Zel's personal insurance of \( R 750 \) was debited to the insurance account. Paid the rates deposit of R7 800 to the municipality.
Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy