If Purchases total $40,000; Freight-In, $3,000; Purchases Discounts, $1,000; and Purchases Returns and Allowances, $500; then total cost of goods purchased will total:
a. $40,000
b. $41,500
c. $38,000
d. $35,500
e. $44,500
b
You might also like to view...
Wind Chime and Fire Hut Companies purchased identical equipment having an estimated useful life of ten years. Wind Chime uses the straight-line depreciation method and Fire Hut uses the double-declining-balance method of depreciation. Assuming the two entities are similar in all other respects, which of the following statements is correct?
a. Wind Chime's depreciation expense will be greater in the second year than Fire Hut's depreciation expense. b. Fire Hut's book value will be greater than Wind Chime's book value at the end of year one. c. Wind Chime's net income will be greater than Fire Hut's net income in year nine. d. Fire Hut's book value will be less than Wind Chime's book value at the end of year two.
________ activities include those the company undertakes to make the product accessible and available to target customers
A) Line extension B) Segmentation C) Marketing research D) Channel E) New-product development
Answer the following statements true (T) or false (F)
1. Direct labor costs are accumulated in the Manufacturing Overhead account. Process costing is used. 2. The journal entry to record indirect labor costs incurred, but not paid, includes a debit to Manufacturing Overhead and a credit to Wages Payable. Process costing is used. 3. Under a process costing system, direct labor costs are assigned to the Work-in-Process Inventory account of the department for which they are incurred. 4. Under process costing, depreciation on plant machinery is debited to the respective department's Work-in-Process Inventory. 5. When finished products are sold, Sales Revenue is debited, and Cost of Goods Sold is credited. Process costing and the perpetual inventory system are used.
Raven, Inc. has a division that manufactures a component that sells for $195 and has a variable cost of $30. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $20. What is the minimum transfer price if the division is operating below its capacity?
A) $195 B) $30 C) $50 D) $20