$\begin{array}{ll}\text { October } & 75,000 \\\text { November } & 98,000 \\\text { December } & 63,000\end{array}$

question 58

Multiple Choice

$\begin{array}{ll}\text { October } & 75,000 \\\text { November } & 98,000 \\\text { December } & 63,000\end{array}$ Each jar requires half a pound of berries. Yummy prefers to buy the freshest berries, so its policy is to have just 3% of the following month's production needs in ending inventory. On October 1, the company had 1,125 pounds of berries in inventory. Yummy's pays $0.60 per pound of berries. It buys all berries on account and typically pays 40% of a month's purchases in that month, and the remaining 60% the following month.
-Refer to Figure 9-9. How much cash is paid in November for berry purchases (rounded to the nearest dollar) ?

• A) $25,258
• B) $21,088
• C) $28,900
• D) $19,963
• E) $32,212

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Definitions:

Supplies Account

An account used to track the cost of supplies bought and used by a business over a period.

Supplies Expense

Supplies expense refers to the cost of consumable supplies used during an accounting period, recognized as an expense on the income statement.

Physical Count

The actual counting of inventory items, typically performed at the end of an accounting period to verify records.

Revenue Recognition Principle

A rule in accounting that outlines the exact circumstances in which income is considered as earned and documented.