Brenda's Bakery Has the Following Information Available for October How Much Raw Material Was Purchased in October?
A) $23

question 33

Multiple Choice

Brenda's Bakery has the following information available for October:
$\begin{array}{c}\begin{array}{l}\\ \text { Raw materials }\\ \text { Work-in-process }\\ \text { Finished goods}\\ \text { Cost of goods manufactured}\\ \text {Cost of goods sold}\\ \text { Direct labour costs }\\ \text { Factory rent and depreciation}\\ \text { Selling expenses}\end{array}\begin{array}{rr}\underline{\text { Beginning} } &\underline{ \text { Ending }}\\\$ 4000 & \$ 2000 \\32000 & 17000 \\5000 & 3000 \\& 88000 \\& 90000 \\& 35000 \\& 10000 \\& 3000 \end{array}\end{array}$





How much raw material was purchased in October?

• A) $23 000
• B) $25 000
• C) $26 000
• D) $28 000

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Definitions:

2% Floor

A tax rule that limits the deductibility of certain miscellaneous expenses to only the portion that exceeds 2% of the taxpayer’s adjusted gross income.

Sales Taxes

Taxes levied by governments on the sale of goods and services, which are typically paid by the consumer at the point of purchase.

Schedule A

A form used with the U.S. federal tax return (Form 1040) to itemize deductions, including medical expenses, state and local taxes, and charitable donations.

Itemized Deduction

Itemized deductions are specific expenses allowed by the IRS that can decrease an individual's taxable income.