If the seller, through words or behavior, makes promises about the goods, he has created an express warranty.
Answer the following statement true (T) or false (F)
True
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Using the information below in the computation of cost of goods sold, what would be the appropriate amount of Purchases? Purchase returns $ 1,200 Inventory, December 31 2,500 Cost of goods sold 10,500 Purchases ? Inventory, January 1 2,500 Freight-in 1,500
A) $10,800 B) $11,200 C) $ 9,700 D) $10,200
During its first year of operations, 2016, the Cocoa Company reported both a pretax financial and a taxable loss of $300,000. The income tax rate is 30% for the current and future years. Due to a sufficient backlog of sales orders, Cocoa did not establish a valuation allowance to reduce the $90,000 deferred tax asset. However, early in 2017, one major customer, representing 60% of the 2017
year-end sales backlog, went bankrupt. Cocoa now believes that it is more likely than not that 75% of the deferred tax asset will not be realized. The entry to record the valuation allowance would be A) Income Tax Expense 67,500Deferred Tax Asset 67,500 B) Income Tax Benefit from OperatingLoss Carryforward 67,500Deferred Tax Asset 67,500 C) Income Tax Expense 67,500Allowance to Reduce DeferredTax Asset to Realizable Value 67,500 D) Allowance to Reduce Deferred TaxAsset to Realizable Value 67,500Income Tax Expense 67,500
Which of the following products is not an example of a stock-keeping unit (SKU)?
A. No-ad sunscreen, SPF 50 in 50-ounce squeeze-top dispenser B. Queen-size Sealy mattress with extra back support and Scotch Guard C. Teen necklaces with matching bracelets and rings D. V-8 vegetable juice in 32-ounce can E. Size 12, white, full sleeve, Ralph Lauren shirts
Which of the following is an example of a direct labor cost standard?
A) $40 per direct labor hour B) 50 square feet per unit C) $0.95 per square foot D) 0.5 direct labor hours per unit