Question

Ford Company had beginning raw materials inventory of $8,400. During the period, the company purchased $48,000 of raw materials on account. If the ending balance in raw materials was $5,400, the amount of raw materials transferred to work in process inventory is: ________.

Answer 1

Answer: $51,000

Step-by-step explanation:

Given that,

Beginning raw materials inventory = $8,400

Raw materials purchased = $48,000

Ending balance in raw materials = $5,400

Total raw materials inventory:

= Beginning raw materials inventory + Raw materials purchased

= $8,400 + $48,000

= $56,400

Now, the ending balance in raw materials was $5,400

Hence,

Amount of raw materials transferred to work in process inventory:

= Total raw materials inventory - Ending balance in raw materials

= $56,400 - $5,400

= $51,000