Troski Corporation Sells a Number of Products to Groups That

question 39

Essay

Troski Corporation sells a number of products to groups that provide educational workshops and seminars. One of the products involves a combination leather case and note pad. The company purchases the case and pad combination from a supplier and encloses a $3 pen that contains the educational groups' name and logo.
Troski began to carry this product at the start of 20x3, acquiring 12,500 cases from Executive Supply for $87,500 along with an identical number of pens from Accent Goods. During 20x3, 9,500 of the cases and pens were issued to Troski's assembly operation where the pen is added. Eighty percent of these cases were completed as of December 31, and a review of the December 31 finished-goods inventory found 2,600 completed cases in the warehouse. Conversations with salespeople revealed that 70 finished sets were used in various company marketing activities throughout the year.
Required:
A. Determine the cost of the cases and pens that would appear in Troski's raw materials, work in process, and finished-goods inventory as of December 31.
B. Determine the cost of the cases and pens that would appear in the company's cost of goods sold for 20x3.

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Definitions:

Productivity

The efficiency at which individuals, companies, or economies produce goods or services, often measured by the output per unit of input.

Evaluation Apprehension

The fear or anxiety individuals experience when they know they are being assessed or judged by others.

Social Facilitation

The tendency for people to perform better on simple tasks, or worse on complex tasks, when in the presence of others.

Binge Eating

The excessive consumption of large amounts of food in a short period, often associated with a loss of control over eating.