The Following Information Is Available for the Year Ended December

question 193

Multiple Choice

The following information is available for the year ended December 31:

$\begin{array}{lr}\text { Beginning raw materials inventory } & \$ 11,000 \\\text { Raw materials purchases } & 86,000 \\\text { Ending raw materials inventory } & 10,400 \\\text { Manufacturing supplies expense } & 900\end{array}$
The amount of raw materials used in production for the year is:

• A) $87,500.
• B) $85,700.
• C) $86,900.
• D) $85,400.
• E) $86,600.

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Definitions:

Sale of Goods

A transaction between a buyer and a seller involving the transfer of ownership of goods from one party to another for a price.

Secondary Obligation

A duty or liability that is dependent on the occurrence or non-occurrence of certain conditions or the failure to perform a primary obligation.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise if the other party has significantly relied on that promise to their detriment, even if there is no formal contract.

Statute Of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the parties involved to be enforceable.