Nevis Motors manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $360 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget: JulyAugustSeptemberPlanned production in units1,0001,100980The cost of platinum to be purchased to support August production is:
A. $195,840.
B. $200,160.
C. $198,000.
D. $391,680.
E. None of the answers is correct.
Answer: A
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Indicate whether the statement is true or false
Alltech Company maintains a separate accounts receivable account for each customer. On June 18, Alltech provides $6100 of services on account to customer Anthony and $1000 of services on account to customer Walker. How will these two transactions affect the control and subsidiary accounts?
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One of the four general criteria for a capital lease specifies that the lease term be equal to or greater than
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