A recent balance sheet for Porsche AG shows beginning raw materials inventory of 83 million and ending

Question:

A recent for Porsche AG shows beginning raw materials inventory of €83 million and ending raw materials inventory of €85 million. Assume the company purchased raw materials (on account) for €3,108 million during the year.
(1) Prepare journal entries to record
(a) The purchase of raw materials and
(b) The use of raw materials in production.
(2) What do you notice about the € amounts in your journal entries?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...