Question
Garcia company reports beginning raw materials inventory of
purchased
Note: Assume all raw materials were used as direct materials.
Raw materials used
purchased
Note: Assume all raw materials were used as direct materials.
Raw materials used
Ask by Goodwin Stuart. in the United States
Mar 13,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
Materials used during the month are $3,325.
Solution
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Mind Expander
To calculate the raw materials used, you can use the formula:
Plugging in the values given:
This simplifies to:
So, the total amount of raw materials used during the month is
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!
