Bal. Raw Materials Inventory 45 255 20 Purchased Bal. Used
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Analyze the T-accounts to find the direct materials used and total materials used.
Transcribed Image Text:### Raw Materials Inventory
- **Bal.** (Beginning Balance): 45 units
- **Purchased**: 255 units
A table is shown representing the inventory tracking for raw materials. It includes:
- **Balance (Bal.)**: This is the initial quantity of raw materials available, which is 45 units.
- **Purchased**: The number of additional units acquired during the period, totaling 255 units.
- **Used**: The quantity used is not directly specified in the diagram but can be calculated.
- **Balance (Ending Balance)**: The remaining quantity of raw materials, which is 20 units.
The diagram is a simple table dividing the inventory into sections for beginning balance, purchases, and ending balance, allowing users to compute how many units were used during the period by subtracting the ending balance from the sum of the beginning balance and purchases.
![**Work-in-Process Inventory**
| | Amount |
|--------------------------|--------|
| **Bal.** | 15 |
| **Direct Materials** | [Blank]|
| **Direct Labor** | 290 |
| **Manufacturing Overhead** | 155 |
| **Bal.** | 25 |
On the right side of the table, under "Cost of Goods Manufactured," the total amount is 510.
**Explanation:**
This table represents the accounting for work-in-process inventory within a manufacturing environment. It breaks down the costs involved in partially completed goods:
- **Beginning Balance (Bal.)**: The inventory at the start, valued at 15.
- **Direct Materials**: The cost of materials used in production is not explicitly provided.
- **Direct Labor**: Costs for the labor directly involved in the manufacturing process are 290.
- **Manufacturing Overhead**: Indirect costs associated with the manufacturing process are 155.
- **Ending Balance (Bal.)**: Inventory at the end, valued at 25.
The total "Cost of Goods Manufactured" sums up to 510, representing the complete cost for the period.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb157bc0-6293-4c88-9836-1cb6ad222ace%2F4d06e24a-2bd2-4537-8e74-6f031f02bbff%2Fsoahdug_processed.png&w=3840&q=75)
Transcribed Image Text:**Work-in-Process Inventory**
| | Amount |
|--------------------------|--------|
| **Bal.** | 15 |
| **Direct Materials** | [Blank]|
| **Direct Labor** | 290 |
| **Manufacturing Overhead** | 155 |
| **Bal.** | 25 |
On the right side of the table, under "Cost of Goods Manufactured," the total amount is 510.
**Explanation:**
This table represents the accounting for work-in-process inventory within a manufacturing environment. It breaks down the costs involved in partially completed goods:
- **Beginning Balance (Bal.)**: The inventory at the start, valued at 15.
- **Direct Materials**: The cost of materials used in production is not explicitly provided.
- **Direct Labor**: Costs for the labor directly involved in the manufacturing process are 290.
- **Manufacturing Overhead**: Indirect costs associated with the manufacturing process are 155.
- **Ending Balance (Bal.)**: Inventory at the end, valued at 25.
The total "Cost of Goods Manufactured" sums up to 510, representing the complete cost for the period.
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