A Flour Mill Orders Grain Sacks from a Local Farmer

question 24

Short Answer

A flour mill orders grain sacks from a local farmer.When the company places an order for grain on account,the corresponding journal entry includes a debit to supplies and a credit to ____________________.

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Definitions:

Direct Labor-Hours

A measure of the amount of time workers spend directly manufacturing a product, often used in costing and budgeting.

Raw Materials Purchases Cost

The expense incurred in buying raw materials intended for the manufacturing of products.

Budgeted Unit Sales

The number of units that an organization plans or expects to sell in a specific period, according to its budget.

Beginning Inventory

The value of all the inventory held by a company at the start of an accounting period.