Question

Direct materials used LO C5 3M Co. reports beginning raw materials inventory of $902 million and ending raw materials inventory of $855 million. 3M purchased $3,646 million of raw materials during the year. What is the amount of raw materials it used during the year?

Answer 1

Raw materials used during the year 3,693 MILLONS

Step-by-step explanation:

From the intentory Identity we can solve for used raw materials

`$$Beginning Inventory + Purchase = Ending Inventory + USED`

We post the know values, and solve for the unknow values:

`902 + 3,646 = 855 + USED\\902 + 3646 - 855 = 3,693`

Raw materials used during the year 3,693 MILLONS

Notice: This identity can be use anytime you have partial information about inventory to get the missing data.