9.66 Summarizing Raw Materials Quantities Using IDEA

You have been assigned the task of recalculating the clients Raw Materials ending inven- tory 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:

1. Calculate the total year end quantity for Raw Materials Inventory (Hint: Beginning Balance + Purchases Used in Production = Ending Balance. Dont 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.)

2. Are there any significant discrepancies between the calculated ending inventory and the inventory counts? Identify possible reasons for such discrepancies.

3. How would you proceed to resolve these issues?

d. What would you propose as the final raw materials inventory quantity?