Which of the Following Goods Should Pin Department Store Include

question 17

Multiple Choice

Which of the following goods should Pin Department Store include in its December 31 count?

• A)Goods held on consignment from ABC Wholesale
• B)Goods sold and shipped to Gray Brothers,in-transit F.O.B shipping point.
• C)Goods that have been consigned to Dalton Brothers
• D)Goods in transit purchased F.O.B.destination point

Identify different classes of assets and understand how their cost is reported and amortized over time.

Distinguish between expense and asset classification and the significance of each in financial reporting.

Analyze the effects of not making adjusting entries on the accuracy of financial statements.

Understand the concepts of residual value, book value, and accumulated depreciation.

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Definitions:

Product Costs

The three components of manufacturing cost: direct materials, direct labor, and factory overhead costs.

Direct Labor

The labor cost associated with workers who are directly involved in the production of goods or the provision of services.

Direct Materials

Raw materials that are directly incorporated into the finished product and can be easily traced to it.

Ideal Standards

Standards that can be achieved only under perfect operating conditions, such as no idle time, no machine breakdowns, and no materials spoilage; also called theoretical standards.