A company has beginning inventory of 10 units at a cost of $10 each on February 1. On February 3, it purchases 20 units at $12 each. 12 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 12 units that are sold?
A. $128
B. $140
C. $124
D. $130
E. $120
Answer: C
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In the independent auditors' report included with the annual report, management discusses the financial statements and provides the shareholders with explanations for certain amounts reported in the statements
a. True b. False Indicate whether the statement is true or false
A supplier has offered to sell the component to Carver for $640 per unit. If Carver buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $20,000 annually. Assuming that Carver needs 3000 components annually and that the fixed manufacturing overhead is unavoidable, what would be the impact on operating income if Carver outsources?
Carver Company manufactures a component used in the production of one of its main products. The following cost information is available:
A) Operating income would decrease by $100,000.
B) Operating income would increase by $20,000.
C) Operating income would decrease by $20,000.
D) Operating income would increase by $120,000.
Which of the following is not one of Hardy’s dimensions of power?
a. Resource power b. Charisma power c. Process power d. Meaning power
Derek placed an order for seven electronic circuits for his project, but only two were delivered on the specified date. A week later, the remaining five circuits had still not arrived, prompting Derek to write a claim letter to the seller. Which of the following should Derek avoid when writing the claim letter?
A. Providing all the details about the transaction in chronological order B. Suggesting the kinds of solution that Derek would consider acceptable C. Starting the letter with a threatening or insulting statement D. Checking if it is the supplier's fault or the shipping company's fault