If cost of goods sold does not equal the cost of merchandise purchased during the period, an adjustment must be made to correct the error
a. True
b. False
Indicate whether the statement is true or false
False
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What will be an ideal response?
Which of the following is NOT one of the four basic focus strategies?
a. Service focused b. Unfocused c. Fully focused d. Refocused e. Market focused
As of December 31, 2013, Desert Junction Corporation had the following account balances: Cash: $100,000 Accounts Receivable: $27,000 Merchandise Inventory: $35,000 Property, Plant, & Equipment: $150,000 Accounts Payable: $42,000 Long-Term Notes Payable: $122,000 Common Stock: $110,000 Retained Earnings: $38,000 Net Sales totaled $350,000, Cost of Goods Sold was
$180,000, total Operating Expenses were $73,000 and Income Taxes Expense were $27,000 for that same year. On December 31, 2012, total assets were $336,000 and total liabilities were $154,000 . ??Desert Junction Corporation's profit margin for 2013 is: a. 20 percent. b. 28 percent. c. 35 percent. d. 48 percent.
Landoni Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. The standards for direct materials for the company's only product specify 2.7 kilos per unit at $5.00 per kilo or $13.50 per unit. During the year, the company purchased 75,200 kilos of raw material at a price of $4.90 per kilo and used 69,290 kilos of the raw material to produce 25,700 units of work in process.Assume that all transactions are recorded on a worksheet as shown in the text. On the left-hand side of the equals sign in the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and PP&E (net). All of the variance columns are on the right-hand-side of the equals sign along with the column
for Retained Earnings.When recording the raw materials purchases, the Raw Materials inventory account will increase (decrease) by: A. ($376,000) B. $376,000 C. ($368,480) D. $368,480