The Mangum Steel Corporation manufactures sheet metal for the automotive industry. Diane, the accountant, has received several invoices. Three of the invoices totaling $10, 897 are for items that will be used in the manufacturing process. Two additional invoices totaling $25, 123 are for items that will be repairing several pieces of manufacturing machinery. The terms of the invoices are 2/10, n30. What amount will Diane debit to the materials account?

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	$10, 897
B	$25, 123
C	$36, 020
D	$35, 300

Explanation:

Detailed explanation-1: -Sheetmetal generally comes in three forms-mild steel, aluminum, and stainless steel. Of these, aluminum and mild steel are by far the most commonly used for automotive projects.

Detailed explanation-2: -In cars, steel is used to create the underlying chassis or cage beneath the body that forms the skeleton of the vehicle and protects you in the event of a crash. Door beams, roofs and even body panels created during auto manufacturing are made of steel on most cars today.

Detailed explanation-3: -The main factors for selecting the material, especially for the automobile body, are numerous and include thermal, chemical or mechanical resistance, easy manufacturing, durability and many other mechanical properties including cost and availability of course.

Detailed explanation-4: -Steel: It is the most common, go-to material for body structure and outer panel design due to its strength, formability, well known process of welding and maintainability. It has a good life with proper treatment and coatings. There are different types of steel in modern cars.

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