Middleton Company uses the perpetual inventory system. The company purchased an item of inventory for $130 and sold the item to a customer for $200. How will the sale affect the company's Inventory account?
A. The Inventory account will decrease by $70.
B. The Inventory account will not change.
C. The Inventory account will decrease by $200.
D. The Inventory account will decrease by $130.
Answer: D
You might also like to view...
A special class of diagrams called ________ contains enough visual and textual information to function as standalone documents
A) photographs B) pictograms C) data clouds D) infographics E) geographic information systems
A customer purchased a drill press on November 14 on account from Sears. The drill press was delivered two weeks later. The customer paid for the drill press on December 5. When should Sears record the revenue for this transaction according to the revenue recognition principle?
A. Evenly in each of the two months. B. One-third in November and two-thirds in December. C. December. D. November.
Ravena Labs, Inc. makes a single product which has the following standards:Direct materials: 2.5 ounces at $20 per ounceDirect labor: 1.4 hours at $12.50 per hourVariable manufacturing overhead: 1.4 hours at 3.50 per hourVariable manufacturing overhead is applied on the basis of standard direct labor-hours. The following data are available for October:•3,750 units of compound were produced during the month. •There was no beginning direct materials inventory. •Direct materials purchased: 12,000 ounces for $225,000. •The ending direct materials inventory was 2,000 ounces. •Direct labor-hours worked: 5,600 hours at a cost of $67,200. •Variable manufacturing overhead costs incurred amounted to $18,200. •Variable manufacturing overhead applied to products: $18,375. The
materials price variance for October is: A. $15,000 Favorable B. $15,000 Unfavorable C. $25,000 Unfavorable D. $25,000 Favorable
Expertise of organizational members that has not been formally documented best describes
A) wisdom. B) information. C) data. D) experience. E) tacit knowledge.