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On February 3, the company purchased materials amounting to P950,000 on account. Transportation costs amounted to P5,000. Terms: 8%, 3/15, n/60. a. Using the Perpetual Inventory System, how much is the recorded Purchase on February 3? b. Using the Perpetual Inventory System, how much is the Raw Materials on February 3?

On February 3, the company purchased materials amounting to P950,000 on account. Transportation costs amounted to P5,000. Terms: 8%, 3/15, n/60. a. Using the Perpetual Inventory System, how much is the recorded Purchase on February 3? b. Using the Perpetual Inventory System, how much is the Raw Materials on February 3?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 6EB: Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a...
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On February 3, the company purchased materials amounting to P950,000 on account. Transportation costs amounted to P5,000. Terms: 8%, 3/15, n/60.

a. Using the Perpetual Inventory System, how much is the recorded Purchase on February 3?
b. Using the Perpetual Inventory System, how much is the Raw Materials on February 3?

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