Awesome Software Purchases Programs from Apple Inc

question 163

Multiple Choice

Awesome Software purchases programs from Apple Inc., with an invoice price of $14,900 and terms of sale of 3/15, n/30. What is the net amount due on the order if a partial payment of $2,000 is made on the 15th day?

• A) $12,900.00
• B) $12,838.14
• C) $2,061.85
• D) $1,200.00

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Definitions:

Materials

Substances or components used in the manufacturing or production process, a broader term that may include raw materials and other inputs.

Weighted-average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Work in Process

Inventory that includes goods partially completed but not yet ready for sale, representing costs of direct labor, materials, and overhead.

Equivalent Units

A term used in cost accounting to express the amount of work done during a period in terms of complete units of output.