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 can be calculated using the following formula -

Beginning raw materials inventory + Purchases of raw materials - Ending raw materials inventory = Raw materials used

From the given information, the beginning raw materials inventory is $2,000, purchases of raw materials is $6,000, and ending raw materials inventory is $4,500. Substituting these values in the above formula, we get -

$2,000 + $6,000 - $4,500 = $3,500

Therefore, the amount of raw materials used in production for the year is $3,500.

The Following Information Is Available for the Year Ended December