The following information is available for the year ended December 31: The amount of raw materials used in production for the year is:
A)$4,100
B)$5,100
C)$3,500
D)$6,500
E)$4,000

Question

The following information is available for the year ended December 31:  The amount of raw materials used in production for the year is:
A)$4,100 
B)$5,100 
C)$3,500 
D)$6,500 
E)$4,000

Quizplus · Accepted Answer

The amount of raw materials used in production is calculated by subtracting the ending raw materials inventory from the sum of beginning raw materials inventory and raw materials purchased during the year. From the information given, the beginning raw materials inventory is $2,600, purchases during the year is $6,000, and ending raw materials inventory is $5,100. 
So, raw materials used in production = $2,600 + $6,000 - $5,100 = $3,500. Therefore, the best choice is C.

The Following Information Is Available for the Year Ended December