Zale's Bought a Tea Set for $1,400

question 21

Multiple Choice

Zale's bought a tea set for $1,400. Zale's wants to markup the set 55% of the selling price. The selling price of the tea set should be:

• A)$2,030
• B)$2,300
• C)$3,111.11
• D)$3,111.10
• E)None of these

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Definitions:

Bottling Department

A section within a manufacturing facility where products, typically beverages, are placed into bottles for distribution and sale.

Process Costing System

A cost accounting system used where similar goods or services are produced in a continuous process, assigning costs to units of output on an average basis.

Homogeneous Product

A product that is uniform and consistent in quality and characteristics, making it indistinguishable from products produced by other manufacturers.

Weighted-Average Method

A cost accounting method that calculates the cost per unit of inventory based on the average cost of all similar items in the inventory.