Butte Boat Company, experienced the following events during 2007: Purchased $1,800,000 of lumber and other materials for building boats. Incurred $200,000 for advertising.
Paid $60,000 to have lumber transported to its factory. Had sales revenue of $6,000,000 during the year. Incurred $400,000 of general and administrative expenses.
Took a periodic inventory at year-end and determined that material costing $ 400,000 was on hand. The inventory at the beginning of the year was $200,000.
All costs incurred were added to the appropriate accounts. All sales were on credit. Required:
Give the amounts for the following items in Butte Boat Company's Raw-Material inventory account:
a) Transfers in (TI).
b) Beginning balance (BB).
c) Transfers out (TO).
d) Ending balance (EB).

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The Answer of Butte Boat Company, experienced the following events during 2007: Purchased $1,800,000 of lumber and other materials for building boats. Incurred $200,000 for advertising.
Paid $60,000 to have lumber transported to its factory. Had sales revenue of $6,000,000 during the year. Incurred $400,000 of general and administrative expenses.
Took a periodic inventory at year-end and determined that material costing $ 400,000 was on hand. The inventory at the beginning of the year was $200,000.
All costs incurred were added to the appropriate accounts. All sales were on credit. Required:
Give the amounts for the following items in Butte Boat Company's Raw-Material inventory account:
a) Transfers in (TI).
b) Beginning balance (BB).
c) Transfers out (TO).
d) Ending balance (EB).

Butte Boat Company, Experienced the Following Events During 2007: Purchased