3.
Selected accounts of Kosar Manufacturing Company at year end appear below:
DR I CR
RAW MATERIALS INVENTORY
(a) 40,000 I (d) 35,000
WORK IN PROCESS INVENTORY
(d) 35,000 I (g) 140,000
(e) 75,000
(f) 100,000
FINISHED GOODS INVENTORY
(g) 140,000 I (h) 120,000
COST OF GOODS SOLD
(h) 120,000 I
FACTORY LABOR
(b) 110,000 I (e) 110,000
MANUFACTURING OVERHEAD
(c) 75,000 I (f) 100,000
(e) 35,000
Instructions
Explain the probable transaction that took place for each of the items identified by letters in the accounts. For example:
(a) Raw materials costing $40,000 were purchased.
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