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melomori [17]
2 years ago
12

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending

Raw materials inventory$547,000 $610,000 The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to: Multiple Choice $955,000. $892,000. $1,565,000. $408,000.
Business
1 answer:
yKpoI14uk [10]2 years ago
5 0

Answer:

Purchases= $408,000

Explanation:

Giving the following information:

Beginning Ending Raw materials inventory$547,000 $610,000

The raw materials used in manufacturing during the year totaled $1,018,000

<u>To calculate the direct material purchased, we need to use the following formula:</u>

Purchases= direct material used in production - ending inventory

Purchases= 1,018,000 - 610,000

Purchases= $408,000

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On May 1, Shilling Company sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the
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Answer:

The journal entry that is to be recorded on May 1 is shown below:

Explanation:

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Accounts Receivable A/c...................Dr     $5,800

       Sales A/c............................................Cr      $5,800

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Costs of goods sold A/c....................Dr   $4,000

       Merchandise inventory A/c...................Cr   $4,000

The cost of the goods sold amounts to $4,000. So, the account of COGS is debited and it is against the inventory. Therefore, the merchandise inventory is credited.

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