Homework SourseSheffield Corps accounting records reflect the following inv
Sheffield Corp.\'s accounting records reflect the following inventories:
During 2017, $730000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000.
The total raw materials available for use during 2017 for Sheffield Corp. is
$970000.
| Dec. 31, 2017 | Dec. 31, 2016 | |
| Raw materials inventory | $240000 | $190000 |
| Work in process inventory | 300000 | 160000 |
| Finished goods inventory | 190000 | 150000 |
Solution
C. $920,000
The total raw materials available for use during 2017 for Sheffield Corp. is:
= Beginning balance + Purchases
= $190,000 + $730,000
= $920,000
