Company M
Company M Reported the Following Information -Refer to the Figure Company M

question 152

Multiple Choice

Company M
Company M reported the following information:
$\begin{array}{lr}\text { Accounts payable, December 31, Year 1 } & \$ 60,000 \\\text { Accounts payable, December 31, Year 2 } & 80,000 \\\text { Inventory, December 31, Year 1 } & 45,000 \\\text { Inventory, December 31, Year 2 } & 60,000 \\\text { Cost of goods sold-Year 2 } & 1,000,000\end{array}$

-Refer to the figure Company M.All merchandise purchases were on account.How much cash was paid to suppliers for merchandise purchases during Year 2?

• A) $995,000
• B) $1,005,000
• C) $1,020,000
• D) $1,050,000

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Definitions:

Receipt Of Order

The process of receiving and acknowledging an order from a customer or client, marking the initiation of order fulfillment.

Production Process

The method of converting raw materials into finished products through a series of steps and operations.

Production Lead Time

The total time taken from the beginning of production to the product's completion and readiness for delivery.

Order-Level Costs

Expenses directly related to a specific order, including purchasing, handling, and setup costs.