Question
You have been assigned the task of recalculating the clients Raw Materials ending inventory quantity based on purchase and manufacturing records and comparing it to
You have been assigned the task of recalculating the client’s Raw Materials ending inventory quantity based on purchase and manufacturing records and comparing it to the year-end inventory count. You may assume there is no Work-in-Process inventory as of year-end.
Required:
Calculate the total year end quantity for Raw Materials Inventory (Hint: Beginning Balance + Purchases – Used in Production = Ending Balance. Don’t forget that you should only include purchases that have been received in calculating purchases. Column “TYPE” in 3rd q inventory database will be helpful for extracting relevant records.)
Are there any significant discrepancies between the calculated ending inventory and the inventory counts? Identify possible reasons for such discrepancies.
How would you proceed to resolve these issues?
What would you propose as the final raw materials inventory quantity?
Step by Step Solution
3.43 Rating (137 Votes )
There are 3 Steps involved in it
Step: 1
Raw Materials Beginning Balance Purchases Used in Production Ending Balance Assumed Figures Beginnin...Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started