Smooth Sailing Company Experienced the Following Events During 2020

question 80

Essay

Smooth Sailing Company experienced the following events during 2020:
(1) Purchased $1,800,000 of lumber and other materials for building boats.
(2) Incurred $200,000 for advertising.
(3) Paid $60,000 to have lumber transported to its factory.
(4) Had sales revenue of $6,000,000 during the year.
(5) Incurred $400,000 of general and administrative expenses.
(6) Took a periodic inventory at year-end and determined that material costing $400,000 was on hand. The inventory at the beginning of the year was $200,000.
(7) All costs incurred were added to the appropriate accounts. All sales were on credit.
Required:
Solve for the following items in the company's Raw Materials inventory account:
a) Transfers in (TI).
b) Beginning balance (BB).
c) Transfers out (TO).
d) Ending balance (EB).

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Definitions:

Policy Report

A document that presents analysis and recommendations for a specific policy issue, aimed at informing policymakers and stakeholders.

Topical Pattern Of Organization

An organizational structure where information is arranged according to different topics or categories relevant to the main subject.

Informational Report

A document that presents data and facts without analysis, intended to inform the reader about a specific topic or situation.

Arrangement Patterns

The organization or layout of elements within a composition, which can influence the effectiveness and aesthetics of the design or message.