Question

3M Co. reports beginning raw materials inventory of \(902 million and an ending raw materials inventory of \)855 million. If 3M purchased $3,646 million of raw materials during the year, what is the amount of raw materials it used during the year?

Short answer

The business entity uses the raw material of$3,693 during the year.

Step-by-step solution

Definition of Raw Material Inventory

A type of inventory account maintained by the business entity for recording the amount of material that is not processed is known as raw material inventory. It is one of the current asset accounts maintained by the business entity.

Amount of raw material used

Particular	Amount ($ million)
Beginning raw material	$902
Add: Purchased	3,646
Less: Ending raw material	(855)
Raw material used	$3,693