B. Accounts receivable
el Co., a consignee, paid the freight costs for goods shipped from Dale Co., a consignor. These freight
costs are to be deducted from Jel's payment to Dale when the consignment goods are sold. Until Jel sells
the goods, the freight costs should be included in Jel's
A. Cost of goods sold.
B. Accounts receivable.
C. Selling expenses.
D. Freight-out costs.
A. Yes, No
During periods of inflation, a perpetual inventory system would result in the same dollar amount of
ending inventory as a periodic inventory system under which of the following inventory valuation
methods?
FIFO, LIFO
A. Yes, No
B. Yes, Yes
C. No, Yes
D. No, No
B. $910,000
The following information was taken from Cody Co.'s accounting records for the year ended December
31, 2005:
Decrease in raw materials inventory$ 15,000
Increase in finished goods inventory 35,000
Raw materials purchased 430,000
Direct labor payroll 200,000
Factory overhead 300,000
Freight-out 45,000
There was no work-in-process inventory at the beginning or end of the year. Cody's 2005 cost of goods
sold is
A. $955,000
B. $910,000
C. $895,000
D. $950,000
C. $5,350
Marsh Company had 150 units of product A on hand at January 1, year 2, costing $21 each. Purchases of
product A during the month of January were as follows:
Units