Fairfield Companys raw materials inventory transactions for

Fairfield Company\'s raw materials inventory transactions for the most recent month are summarized here Beginning raw material Purchases of raw materials Raw materials ssued s 20,000 Materials requisition 1445 Materiaia requisbon 1440 Materials recjuiston 1447 25000 For Job 101 35.000 For Job 102 30,000 Used on multple jobs 1. How much of the raw materials cost woukd be added to the Work in Process Inventory account during the period? 2. How much ct the taw materiais costs wouldbe added to the Manufacturing Ovetrhead account? 3, Compute the ending balance in the Rau Materials inventory account ReferenceseBlook& Resources

Solution

1) Direct materials are the cost which can be directly associated with the units produced $ Materials requisition 1445 25,000 For job 101 Materials requisition 1446 35,000 For job 102 total 60,000 Direct materials $60,000 2) Indirect materials $30,000 3) ending balance $20,000                            Raw materials inventory account Beg bal 20,000 requistioned 90,000 purchases 90,000 End bal 20,000