Brown Company Engaged in the Following Transactions During May

question 126

Essay

Brown Company engaged in the following transactions during May.Indicate whether each is an asset source (AS),asset use (AU),or asset exchange (AE)transaction.
Purchased raw materials for cash,$42,000
Used raw materials to begin jobs,$28,400
Paid wages of production employees,$18,000
Applied overhead at rate of $1.25 per direct labor dollar
Completed job that had cost $32,000
Sold goods for $44,000 cash
The goods referred to in the transaction above had cost $29,500 to complete