3.
Selected accounts of Kosar Manufacturing Company at year end appear below:
DR I CR
RAW MATERIALS INVENTORY
(a) 40000 I (d) 35000
WORK IN PROCESS INVENTORY
(d) 35000 I (g) 140000
(e) 75000
(f) 100000
FINISHED GOODS INVENTORY
(g) 140000 I (h) 120000
COST OF GOODS SOLD
(h) 120000 I
FACTORY LABOR
(b) 110000 I (e) 110000
MANUFACTURING OVERHEAD
(c) 75000 I (f) 100000
(e) 35000
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 $40000 were purchased.