Suppose Simeon Company Begins the Year with $1,000 in Supplies,purchases

question 89

True/False

Suppose Simeon Company begins the year with $1,000 in supplies,purchases an additional $5,500 of supplies during the year,and ends the year with $700 in supplies.The year-end adjusting entry includes Supplies Expense of $7,200.

---

Definitions:

Direct Labor

The wages and other costs for labor that is directly involved in the manufacturing or production of goods and services.

Production Material Needs

The quantity and type of materials required to meet production goals.

Budgeted Purchases

The anticipated expenditures on goods and materials a company plans to buy for a specific period.

Finished Goods Inventory

The completed products that are ready for sale but have not been sold yet.