[The following information applies to the questions displayed below.] Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $42,000 of common stock for cash. 2) The company paid cash to purchase $26,400 of inventory. 3) The company sold inventory that cost $16,000 for $30,600 cash. 4) Operating expenses incurred and paid during the year, $14,000. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $35,200 of inventory. 2) The company sold inventory that cost $32,800 for $57,000 cash. 3) Operating expenses incurred and paid during the year, $18,000. Note: Sanchez uses the perpetual inventory system.What is the amount of retained earnings that will be shown on the balance
sheet at December 31, Year 2?
A. $26,000
B. $6,200
C. $6,800
D. $38,800
Answer: C
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Beridze Manufacturing expects to produce 2900 units in January and 3600 units in February. Beridze budgets $20 per unit for direct materials. The amount of indirect materials needed for production has been determined to be insignificant and will therefore not be considered in the calculation. The balance in the Raw Materials Inventory account (all direct materials) on January 1 is $38,650. Beridze desires the ending balance in Raw Materials Inventory to be 10% of the next month's direct materials needed for production. Desired ending balance for February is $51,100. What is the cost of budgeted purchases of direct materials needed for January?
A) $58,000 B) $65,200 C) $26,550 D) $25,150
Restrictions to prevent foreign producers from dumping low-cost lumber and steel in the United States are considered to be ______.
A. government inspections B. market risks C. import restrictions D. exchange rate risks
An airline stocking up on fuel when prices are low in anticipation of rising prices is building up?
a. Cycle inventory b. Hedge inventory c. Safety stocks d. Transportation inventory
The UCC permits a contract to be enforced if the parties intended a binding contract, even though important terms may have been left open for later agreement
a. True b. False Indicate whether the statement is true or false