Garotia Company Buys a Building on a Plot of Land

question 82

Essay

Garotia Company buys a building on a plot of land for $115,000, paying $30,000 cash and signing a 30-year mortgage note for $85,000 at 11%. Provide the journal entry for the purchase.

Analyze cost behavior in relation to cost objects.

Calculate direct materials used in production.

Determine the cost of goods manufactured and sold.

Understand the role of direct and indirect costs in production.