Green Space, Inc. manufactures solar coffee makers and employs job-order costing
ID: 2491989 • Letter: G
Question
Green Space, Inc. manufactures solar coffee makers and employs job-order costing system. Beginning raw materials totaled $6,800. During October, Green Space's transactions and accounts included the following:
Raw materials acquired for cash during October $ 10,200
Raw materials received on account during October 75,000
Direct materials requisitioned and transferred to production 79,400
Cost of goods manufactured during October 162,000
How much is the balance of Raw Materials at October 31?
$12,600
$85,200
$92,000
$7,600
Explanation / Answer
BALANCE OF RAW MATERIALS AT OCTOBER 31
= BEGINNING RAW MATERIAL + PURCHASED DURING OCTOBER - MATERIAL REQUISITIONED AND TRANSFERED DURING OCTOBER
= $6800 + ($10200 + $75000) - $79400
= $6800 + $85200 - $79400
= $12600
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