HANDOUT 3- FLOW OF COSTS McKeever Auto EV manufactures parts for electric cars. McKeever...

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Accounting

HANDOUT 3- FLOW OF COSTS
McKeever Auto EV manufactures parts for electric cars. McKeever Auto reports the following for September:
\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,\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,\table[[McKeever Auto incurs $35,000 in depreciation on factory equipment (hint: Accumulated Depreciation],[is Credit entry)]]],[F,\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,\table[[McKeever Auto uses a total of $65,000 worth of raw materials in production. Of that amount, $7,000
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