Journalize the Following Transactions for Alpha Company

question 44

Essay

Journalize the following transactions for Alpha Company:
May 13 Purchased inventory on account from ABC for $4,000.
May 22 Purchased inventory on account from Sara for $2,500.
May 27 Paid off the account from ABC.

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Definitions:

Direct Materials

Basic materials that can be directly linked to the creation of a product and are essential components of the end product.

Budgeted Manufacturing

The estimated amounts and costs associated with the production process, as planned for a specific period.

Variable Manufacturing

Costs in manufacturing that vary with the level of production output, such as raw materials and direct labor costs.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, wages, and insurance.