Garcia company reports beginning raw materials inventory of \( \$ 872 \) and ending raw materials inventory of \( \$ 676 \). If the company purchased \( \$ 3,129 \) 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

To calculate the raw materials used, you can use the formula: \[ \text{Raw Materials Used} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} \] Plugging in the values given: \[ \text{Raw Materials Used} = \$872 + \$3,129 - \$676 \] This simplifies to: \[ \text{Raw Materials Used} = \$3,325 \] So, the total amount of raw materials used during the month is \( \$3,325 \). In the realm of accounting, tracking inventory efficiently is crucial. One common pitfall is failing to accurately record inventory purchases and usage, which can lead to misleading financial statements. Regular reconciliation between physical counts and recorded inventory can help avoid this. For those looking to deepen their understanding of inventory management, consider exploring books like “Inventory Management Explained” by G. Keong Leong. It breaks down various methodologies and best practices in a way that's accessible and engaging, perfect for both novices and seasoned pros!