3M Co. reports beginning raw materials inventory of $986 million and ending raw materials inventory of $928 million. 3M purchased $4,576 million of raw materials during the year. What is the amount of raw materials it used during the year?

$4,634 million

Explanation:

The movement or change in the raw materials balance is as a result of purchases and use. The more the raw materials are used, the more reduced the raw material balance is and the more the purchase, the higher the balance.

Hence the relationship may be stated as

Opening balance + purchases - use = closing balance

$986 million + $4,576 million - amount used = $928 million

Amount used = $986 million + $4,576 million - $928 million

= $4,634 million

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