3. Selected accounts of Kosar Manufacturing Company at year end appear bel

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.