The Following Information Is Available for the Year Ended December

question 129

Multiple Choice

The following information is available for the year ended December 31: $\begin{array} { | l | r | } \hline \text { Beginning raw materials inventory } & \$ 11,000 \\\hline \text { Raw materials purchases } & 86,000 \\\hline \text { Ending raw materials inventory } & 10,400 \\\hline \text { Manufacturing supplies expense } & 900 \\\hline\end{array}$ The amount of raw materials used in production for the year is:

• A) $87,500.
• B) $85,700.
• C) $86,900.
• D) $85,400.
• E) $86,600.

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Definitions:

Honesty in Fact

The genuine belief or actual state of mind devoid of intent to deceive or defraud.

Good Faith

An honest intention to act without taking an unfair advantage over another party, typically related to the fulfillment of contracts and agreements.

Opportunity for Inspection

A provision allowing a buyer to examine goods before purchase to ensure they meet the agreed standards and specifications.

Substantial-Impairment Requirement

This refers to a legal standard requiring a significant or meaningful reduction in the ability to perform or enjoy a right, service, or facility.