As of December 31 2011 Nilsen Industries had 2000 of raw mat

As of December 31, 2011, Nilsen Industries had $2,000 of raw materials inventory. At the beginning of 2011, there was $1,600 of materials on hand. During the year, the company purchased $274,000 of materials; however it paid for only $264,000. How much inventory was requisitioned for use on jobs during 2011?

Solution

Inventory requisitioned for use during 2011 = Beginning balance of raw materials + Purchases during the year – Ending balance = $1600 + $274000 - $2000 = $273600