Watson Company Has the Following Data Calculate the Amount of Direct Materials Used

question 6

Essay

Watson Company has the following data:? $$\begin{array} { l r } \text { Work in process inventory, beginning } & \$ 18,000 \\\text { Work in process inventory, ending } & 25,000 \\\text { Direct labor costs } & 5,000 \\\text { Cost of goods manufactured } & 9,000 \\\text { Factory overhead } & 7,000\end{array}$$ Calculate the amount of direct materials used.

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Definitions:

Journal Entries

The basic unit of accounting record that details a financial transaction, showing debits and credits to accounts impacted by the transaction.

Honoring

The act of fulfilling or adhering to agreements, commitments, or payments.

Dishonoring

Dishonoring occurs when a promised payment, such as a check or electronic payment, is not completed due to insufficient funds or rejection by the bank.

Note Receivable

A written promise for a specified amount of money to be paid by a debtor at a certain future date.