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Vermillion,Inc

question 90

Essay

Vermillion,Inc.has two processes-Dyeing Department and Finishing.The company sold 2,000 bolts of cloth for $220,000,of which $150,000 was sold on account.The total production cost was $385,000 for 5,500 bolts of cloth.The perpetual inventory system and process costing are used.What are the journal entries to record a sale if the company follows a process costing system?


Definitions:

Abstract Information

Concepts or ideas that are not concrete or tangible but are understood intellectually or represent something symbolically.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.

Absorption

The process by which substances are taken up from the environment into the bloodstream or into cells.

Modification

The process of making changes or alterations to something, often to improve it or to adjust it to different conditions.

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