Question
On November 1, 2021, Green Corp., a calendar year-end company, purchased materials costing $300,000 for use in a variety of future R&D activities. As of
- On November 1, 2021, Green Corp., a calendar year-end company, purchased materials costing $300,000 for use in a variety of future R&D activities. As of December 31, 2021, materials costing $75,000 remain unused. There was no beginning balance in the R&D Materials Inventory account.
Assuming the R&D Materials Inventory account was debited at the time of their purchase, the journal entry Green records on 12/31/21 should be which of the following:
| A. | Cost of Goods Sold | 75,000 |
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| R&D Materials Inventory |
| 75,000 |
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| B. | Cost of Goods Sold | 225,000 |
|
|
| R&D Materials Inventory |
| 225,000 |
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| C. | R&D Expense | 225,000 |
|
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| R&D Materials Inventory |
| 225,000 |
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| D. | R&D Expense | 75,000 |
|
|
| R&D Materials Inventory |
| 75,000 |
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| E. | Amortization Expense | 75,000 |
|
|
| R&D Materials Inventory |
| 75,000 |
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|
|
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| F. | Materials (or Supplies) Expense | 225,000 |
|
|
| R&D Materials Inventory |
| 225,000 |
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
