After counting and inspecting incoming materials, the receiving clerk pre receiving report, which shows the quantities and condition of materials r 9. F 10. A credit memorandum is issued when the buyer informs the supplier th T are being returned. 0 TF 11. When materials are returned to the supplier, a journal entry is made wh Accounts Payable and credits Raw Materials Inventory UF 12. The EOQ is the ideal amount of inventory to be ordered at one time for minimizing annual inventory costs. Part IV-Practice Problem Recording Factory Costs: Markgraf Manufacturing Company uses a job-order costing system and incurred the follo costs during July a. Materials purchased, $95,400. b. Materials issued to production: direct materials, $81,300; indirect materials, $13,850. c. Factory wages earned, $112,700. d. Factory wages allocated to production: direct labor, $96,500; indirect labor, $16,200. e. Factory overhead costs incurred on account, $38,340. f. Estimated overhead applied to jobs in progress, $54,900. g. Cost of finished goods transferred to warehouse, $239,600. h. Cost of finished goods sold to various customers, $223,100. s i. Selling price of goods sold to customers on account, $303,875. Page 6 of 8