Williamson Corporation Acquired Two Inventory Items at a Lump-Sum Cost

question 90

Multiple Choice

Williamson Corporation acquired two inventory items at a lump-sum cost of $40,000.The acquisition included 3,000 units of product CF, and 7,000 units of product 3B.CF normally sells for $12 per unit, and 3B for $4 per unit.If Williamson sells 1,000 units of CF, what amount of gross profit should it recognize?

• A)$1,500.
• B)$4,500.
• C)$8,000.
• D)$9,500.

Identify the assumptions, principles, and limitations in the conceptual framework for financial reporting.

Understand the AICPA Special Committee's comprehensive model of business reporting and its categories.

Be familiar with the process and results of the FASB's conceptual framework projects.

Identify and understand the qualitative characteristics of financial information as identified by GAAP.

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