Adding together the ending merchandise inventory and cost of goods sold gives the cost of goods available for sale
Indicate whether the statement is true or false
True
You might also like to view...
Which of the following is an advantage of sales-wave research?
A) It gives surprisingly accurate results on advertising effectiveness. B) It allows the brand to gain favorable shelf position. C) It guarantees immediate brand recognition and high sales volume. D) It can be implemented quickly with a fair amount of security. E) It easily creates a buzz in the minds of customers.
A contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school year. Parol evidence:
A) cannot be used to explain the term, because the plain meaning of a "year" is 12 months. B) cannot be used to explain the term, because it is an integrated document. C) can be used to clarify the parties' intent because in this contract the term "year" is ambiguous. D) cannot be used, because the contract contains an express term that could have been changed by the parties prior to the contract's execution.
Guttery Corporation has provided the following financial data from its balance sheet: Year 2Year 1Accounts receivable, net$112,000 $110,000 Inventory$174,000 $150,000 Total assets$1,236,000 $1,250,000 Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000.The company's average collection period for Year 2 is closest to:
A. 1.0 days B. 27.9 days C. 28.2 days D. 1.1 days
Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$6.55Direct labor$3.50Variable manufacturing overhead$1.40Fixed manufacturing overhead$2.60Fixed selling expense$0.70Fixed administrative expense$0.40Sales commissions$1.50Variable administrative expense$0.45 For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:
A. $10,400 B. $45,800 C. $60,200 D. $56,200