Question - Basil Industries reported the following information for December:
|
Beginning balance, Raw Materials Inventory
|
$187,500
|
|
Beginning balance, Work in process Inventory
|
300,000
|
|
Beginning balance, Finished Goods Inventory
|
106,250
|
|
Purchases of raw materials
|
337,500
|
|
Factory electricity
|
62,500
|
|
Direct labor payroll
|
200,000
|
|
Depreciation on factory equipment
|
218,750
|
|
Insurance on factory building
|
50,000
|
|
Indirect materials used in production
|
43,750
|
|
Total raw materials used in production
|
406,250
|
|
Indirect labor payroll
|
150,000
|
|
Cost of goods manufactured
|
1,250,000
|
|
Cost of goods sold
|
1,312,500
|
What was the ending balance in Basil's Raw Materials Inventory account?
a. $206,250
b. $118,750
c. $162,500
d. $75,000