When a surety or guarantor pays a debt owed to a creditor, he or she acquires any right that the creditor had against the debtor
Indicate whether the statement is true or false
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Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. How should Andrews record the purchase of raw materials for March?
A. Debit Accounts Payable $165,000; credit Raw Materials Inventory $165,000 B. Debit Work in Process Inventory $165,000; credit Raw Materials Inventory $165,000 C. Debit Raw Materials Inventory $165,000; credit Accounts Payable $165,000 D. Debit Raw Materials Inventory $187,000; credit Cash $187,000 E. Debit Accounts Payable $187,000; credit Raw Materials Inventory $187,000
Everyday low pricing of consumer convenience products
A. makes it easy to quickly compete on price-without changing basic strategy-when a competitor offers a particularly large discount for a short period of time. B. has been used by many retailers even though no producers have adopted this approach. C. confuses customers and increases selling costs. D. relies on frequent discounts and allowances from the producer. E. tends to reduce fluctuations in prices customers actually pay.
Boise, a division of Price Enterprises, currently performs computer services for various departments of the firm. One of the services has created a number of operating problems, and management is exploring whether to outsource the service to a consultant. Traceable variable and fixed operating costs total $80,000 and $25,000, respectively, in addition to $18,000 of corporate administrative overhead allocated from Price. If Boise were to use the outside consultant, fixed operating costs would be reduced by 70%. The irrelevant costs in Boise's outsourcing decision total:
A. $25,000. B. $25,500. C. $18,000. D. $17,500. E. None of the answers is correct.
The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $6 per direct labor-hour; the budgeted fixed manufacturing overhead is $86,000 per month, of which $16,100 is factory depreciation.If the budgeted direct labor time for November is 8100 hours, then the total budgeted manufacturing overhead for November is:
A. $86,000 B. $134,600 C. $150,700 D. $118,500