Which of the following scenarios illustrates the use of processed materials in manufacturing?
a. No-Glut Inc. uses rice flour in the manufacture of gluten-free products.
b. Zintec Sugar House uses sugarcane to produce white sugar.
c. Pace, an automobile company, uses magnesium alloy wheels for its high-end cars.
d. Reldex Steel Corp. uses blast furnaces in their manufacturing process.
ANSWER: a
Rice flour, used by No-Glut Inc., is an example of processed materials. Processed materials are products used directly in manufacturing other products. Examples include sheet metal, chemicals, treated lumber, corn syrup, and plastics.
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Marcoff Corporation acquires 30% of the outstanding voting common shares of the Invicta Corporation for $600,000 . Marcoff Corporation acquires the investment in Invicta Corporation by buying previously issued shares of Invicta Corporation from other investors. The entry to record the acquisition is:
a. Investment in Stock of Invicta Corporation . . . . . . . . . . . . . .600,000 Marketable Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .600,000 b. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 Marketable Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 c. Investment in Stock of Invicta Corporation . . . . . . . . . . . . . .600,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 d. Marketable Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 e. Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
Ngu owns equipment that cost $93,500 with accumulated depreciation of $64,000. Ngu asks $35,000 for the equipment but sells the equipment for $33,000. Compute the amount of gain or loss on the sale.
A. $5,500 gain. B. $3,000 gain. C. $5,500 loss. D. $3,500 gain. E. $3,500 loss.
On December 31, the business has $200 of office supplies on hand. If the business started the year with $500 in office supplies and purchased a total of $1,600 in office supplies during the year, what is the value of the office supplies used?
a. $200 b. $700 c. $1,800 d. $1,900 e. None of the above
An unliquidated debt can be described as:
a. a debt in which both its existence and amount is in dispute. b. a debt in which the existence or amount is in dispute. c. a debt disputed by the creditor but not the debtor. d. a debt undisputed by either party.