As of December 31, 2020, GloryBe Industries Had $1,000 of Raw

question 139

Multiple Choice

As of December 31, 2020, GloryBe Industries had $1,000 of raw materials inventory.At the beginning of 2020, there was $800 of materials on hand.During the year, the company purchased $122,000 of materials, however paid for only $117,000.How much inventory was requisitioned for use on jobs during 2020?

• A)$122,200
• B)$117,200
• C)$116,800
• D)$121,800

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Definitions:

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since the asset was put into use.

Equipment

Tangible assets used in the operation of a business to produce goods or provide services, not intended for sale.

Revenue Expenditure

Costs that are expensed in the income statement in the period in which they are incurred, typically related to the day-to-day operating expenses.

New Engine

A recently manufactured or developed engine, often implying improvements or advancements over previous models.