Question

As of December 31, 2019, Concord Corporation had $2000 of raw materials inventory. At the beginning of 2019, there was $1500 of materials on hand. During the year, the company purchased $435000 of materials; however, it paid for only $372500. How much inventory was requisitioned for use on jobs during 2019?

Answer 1

Answer:

$434,500

Explanation:

Data provided in the question:

Ending Raw materials inventory = $2,000

Materials on hand i.e Beginning inventory = $1,500

Materials purchased during the year = $435,000  

Amount paid = $372,500

Now,

The inventory requisitioned for use on jobs during 2019 will be

= Purchases + Beginning inventory - Ending Raw materials inventory

= $435,000 + $1,500 - $2,000

= $434,500