HANDOUT $3-$ FLOW OF COSTS

McKeever Auto EV manufactures parts for electric cars. McKeever Auto reports the following for September:

$\backslash$table$[[,$TRANSACTION$],[$A$,$McKeever Auto purchases $$54,000$ in raw materials on account$/$credit$],[$B$,$McKeever Auto pays $$10,000$ in cash for factory electricity.$],[$c$,\backslash$table$[[$McKeever Auto owes its factory assembly line laborers $$32,000($hint: has not paid them yet, but will$],[$in future$)]]],[$D$,$McKeever Auto paid $$25,000$ cash in Research and Development $($R&D$)$ costs.$],[E,\backslash$table$[[$Mckeever Auto incurs $$35,000$ in depreciation on factory equipment $($hint: Accumulated Depreciation$],[$is Credit entry$)]]],[F,\backslash$table$[[$McKeever Auto's monthly insurance on the factory building is $$8,000.$ The insurance was paid in a$],[$lump sum payment in July $($Hint: we used $$8K$ from the prepaid insurance account, which is credit$],[$entry$)]]],[$G$,\backslash$table$[[$entry$)],[$McKeever Auto uses a total of $$65,000$ worth of raw materials in production. Of that amount, $$7,000$